This Permission has been deactivated (via enterprise configuration) for ESDC's tenant of M365.
This Permission might have been used to:
1. Share with other GC Departments, Partners, etc.
2. Share with System Integrators who may not have an ESDC Network Account
3. Share with Public (use caution here).
There should be a strong Use Case here, with permissions set only at the lowest-level folder, to ensure permissions are not inherited by mistake.