Subfolder has Limited access when shared with non-Team member

Thanks, Jay!  So, I could see the folder, and the person invited to the folder could see it, but it was considered Limited to everyone else.

I created a main meeting folder awhile ago where the group of 8 were automatically invited, and then I added 4 people to it, some who are Team members and some who are not Team members (again all done in the past).  This folder contains multiple subfolders that were shared previously with other Team and non-Team members (as recently as yesterday without issue) - keeping in mind these people are in addition to the group of 8 and the 4 people who have access to the main structure.

Today I created a subfolder within that folder that the group of 8 and the 4 people who were added all could see.

The moment I shared that subfolder with a person not on our team (so he would only have access to this subfolder, not the other folders), the folder was now only seen by him and myself.  I could see the 4 people vanish from that folder.  Oddly, the group of 8 was still shown as having access to the folder and in the sharing permissions - it said they all could edit it, but again, they saw it as Limited.  I am the only one of that group of 8 who could still see the folder and put files in it.

So, even when I removed the person, the damage was already done - the folder was still seen as Limited.  The only way I could get the folder back was to delete it, bring it back, and let another colleague invite that SAME person to the folder (and no issue for that colleague).