My understanding is that this is mostly an attempt to improve the UX around permissions. The inherited sharing and permissions for files in multiple folders wer

My understanding is that this is mostly an attempt to improve the UX around permissions. The inherited sharing and permissions for files in multiple folders were incredibly confusing. They have disallowed this for Shared Drives from the start as shared drives have ownership and strictly hierarchical permissions. Now they want to bring this UX simplification to everywhere in drive. I'm sure they are happy to simplify the backend but this definitely makes the product less confusing. It does however make some rare workflows very complicated.