"Error updating the share: You are not allowed to share [folder name]" when editing shared folder permissions.

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Steps to reproduce

1. Create a Group Folder with a sub-folder inside.
2. Share the sub-folder with a user not in the group.
3. Attempt to edit the permissions of the share.

Expected behaviour

I should be able to edit the permissions (Allow editing, Allow creating, etc.).

Actual behaviour

I receive an error message notification that reads: "Error updating the share: You are not allowed to share [folder name]". The permissions remain unchanged.

Server configuration

Operating system: Linux 5.4.0-131-generic x86_64

Web server: Apache

Database: mysql 8.0.30

PHP version: 8.0.24

Nextcloud version: (see Nextcloud admin page) 24.0.6

Group folders version: 12.0.2

Updated from an older Nextcloud/ownCloud or fresh install: Installed as a Snap originally, so it has updated versions a few times.

Where did you install Nextcloud from: Snap

Are you using external storage, if yes which one: No

Are you using encryption: No

Are you using an external user-backend, if yes which one: LDAP

Client configuration

Browser: Brave Web Browser

Operating system: Debian 11 bullseye

Logs

Nextcloud log (data/nextcloud.log)

There is nothing in the Logging page related to this issue.

Browser log

PUT https://site.name.com/ocs/v2.php/apps/files_sharing/api/v1/shares/2578 404 (Not Found)

ShareRequests.js:111 Error while updating share Error: Request failed with status code 404
    at t.exports (createError.js:16:15)
    at t.exports (settle.js:17:12)
    at XMLHttpRequest.y (xhr.js:66:7)

Start with the PUT request to /ocs/v2.php/apps/files_sharing/api/v1/shares/2578 and the failing call at ShareRequests.js:111, then trace how shared-folder permission updates are authorized. Reproduce the Group Folder and sub-folder steps, and confirm that editing permissions succeeds without the 404 or error notification.