[BUG] ExternalSharing disabled globally when using `AllowFileSharingForGuestUsers` on SiteCollection

[ypcode]

Hi fellows !

Environment

[x] Office 365 / SharePoint Online [ ] SharePoint 2016 [ ] SharePoint 2013

Expected or Desired Behavior

Setting AllowFileSharingForGuestUsers should only affect the setting of the target site collection

Observed Behavior

An issue as been reported and reproduced by at least two users of the Site Designs Studio when applying the .pnp template to install the solution, the external sharing has been globally disabled on the tenant See the XML template here

See the Site Designs Studio repo issue here

Steps to Reproduce

The command executed with the template above is as follows

$sitePath= "SiteDesignsStudio"
$tenantId = Get-PnPTenantId
Apply-PnPTenantTemplate -Path .\SiteDesignsStudio.pnp -Parameter @{TenantName=$tenantName; SitePath=$sitePath; TenantId=$tenantId}

As far as I am concerned in this particular case, this setting is not mandatory for the solution to work, I have removed it from the setup package. I am escalading this here since because I guess it is related to the engine but since I used the PnP cmdlet, it might be relevant to be there, please tell me if I should move this issue :)

Cheers ! Yannick

[ghost]

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