Error FYI-2137 "Unable to share document with FYI Test User" when running a New Collaborate Status Check

Issue

When running the New Collaborate Status Check the following error is displayed:

• Unable to share document with FYI Test User. Please review your External Sharing Settings in Microsoft Entra ID and try again. 

Cause

As part of checking and confirming the configuration of the New Collaborate site, the Status Check tool attempts to share a document with a test user. 

When this fails, it's typically caused by the External Sharing settings being configured differently to the settings required for New Collaborate.

Solution

Review the SharePoint Sharing Policies

1. Open Microsoft 365 Admin Center by visiting https://admin.microsoft.com/.
   
   
2. Log in using a Microsoft Global Admin account.
   
   
3. From the menu on the left-hand side, locate the Admin Centers section and select SharePoint (you may need to first click Show All). 
   
   
4. From the menu on the left-hand side, select Policies, then select Sharing.
   
   
5. Confirm the settings are as below. Refer to Setting up Microsoft 365 for New Collaborate:
   
   • Content can be shared with slider -  New and existing guests
   • Limit external sharing by domain - unticked
   • Allow only users in specific security groups to share externally - unticked
   • Guests must sign in using the same account to which sharing invitations are sent - unticked
   • Guest access to a site or OneDrive will expire automatically after this many days - unticked
     
     
6. Save the changes if any updates were made.

Review the SharePoint Sharing Settings

1. Open Microsoft 365 Admin Center by visiting https://admin.microsoft.com/.
   
   
2. Log in using a Microsoft Global Admin account.
   
   
3. From the menu on the left-hand side, locate the Admin Centers section and select SharePoint (you may need to first click Show All). 
   
   
4. From the menu on the left select Sites - Active Sites.
   
   
5.  Locate the New Collaborate SharePoint Site.
   
   
6. Hover over the site and click the circle to select the site without opening the settings.
   
7. Click Sharing in the menu at the top.
   
   
8. Ensure the settings are set to:
   • External sharing - New and existing guests
   • Advanced settings for external sharing - ensure "Limit sharing by domain" is unticked.