Question:
Why is a user unable to edit the sharing settings for a previous version of a document when they have the permission Edit Sharing Settings for that particular version?
Answer:
The user does not have the Edit Sharing Settings permission for the document's latest version. Sharing settings are version-less, in that all versions of the document share the same set of sharing settings. When it comes to maintaining sharing settings, permissions are based on the latest version of the document.
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