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File Sharing Problems

Fix External Users Cannot Download Shared OneDrive Folders with Subfolders

Kushani NimanthikaKushani Nimanthika Sep 28, 2026 869 views

Question details

External users are unable to download shared folders containing subfolders from OneDrive, often encountering WebException errors and subfolders appearing as text files.

How to Fix External Users Unable to Download Shared OneDrive Folders
Product
Microsoft OneDrive
Device & OS
not provided
Scenario
An external user receives a shared OneDrive folder with 'Can edit' permissions and attempts to download the entire folder, which contains multiple subfolders.
Observed behavior
The download fails with a WebException and a correlation ID. Files in the top-level folder may download normally, but subfolders incorrectly appear as text files.
Before you start

Before proceeding, gather the exact error message, the correlation ID from the download failure, and links to the specific folders that reproduce the problem.

Solution 1Recommended

Escalate the Issue to Microsoft 365 Support via IT Administrator

Since this is an unusual server-side issue with no local settings fix, your organization's Microsoft 365 administrator must open a support request.

This behavior is a known anomaly where the packaging process fails when preparing the folder for download. Because no user-facing settings can resolve this WebException, the issue requires backend investigation by Microsoft engineers.

1
Document the failure details

Copy the exact WebException error message and the correlation ID that appears when the external user attempts to download the folder.

2
Contact your IT administrator

Reach out to your organization's Microsoft 365 IT administrator, providing them with the affected sharing scenario, folder links, permissions setup, and the correlation ID.

3
Open a Microsoft Support request

The IT administrator must log into the Microsoft 365 Admin Center, navigate to the Support section, and create a new service request including the collected diagnostic information.

Escalate the Issue to Microsoft 365 Support via IT Administrator
Temporary Workaround: While waiting for Microsoft support to resolve the issue, the sender can compress the folder into a ZIP file locally and upload the single ZIP file to OneDrive for the external user to download.
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Frequently Asked Questions

Why do my shared OneDrive subfolders appear as text files when downloaded?

This happens due to a server-side bug in OneDrive's file packaging process when preparing the ZIP file for the external user's download. It fails to structure the subfolders properly, resulting in corrupted text file representations.

Can I fix the WebException download error on my own?

No, a WebException during a OneDrive folder download indicates a backend server error. You must provide the correlation ID to your IT administrator so they can open a diagnostic ticket with Microsoft Support.

Is there a way for external users to get the files immediately?

Yes. The external user can download individual files from the top-level folder successfully. Alternatively, the folder owner can ZIP the entire folder on their computer and share the single ZIP file instead of a folder.

Do folder sharing permissions affect this download issue?

The issue has been observed even when sharing permissions are explicitly set to 'Can edit'. Changing the permission levels locally is unlikely to resolve this specific WebException failure.