Hello Box,
I have a user that had created a free account with the company domain. I invited the account into our org to now be a managed account. Storage limitation is set for 7GB on her managed account and the dashboard shows she is under 2GB.
She has signed out and back in, and rebooted the computer.
I was able to create a new folder and upload a file there when logged on as her through the Admin portal.
Thank you,
Willis