Sharing folder with can_view_path = true hides files in parent

Hi,

I have the following folder structure

/folder1/subfolder

I want to share some files inside the folder1 (not all), and then share subfolder with the same user with can_view_path enabled, but when I do this the user I shared with cannot see the individual files I shared with him from folder1 in their structure, they only show up if they do a search for the file name.

His account just can see /folder1 in their root, not the individually shared files, and if he accesses the folder, he can only see the subfolder, again not the indiviual files there.

Is this expected or am I missing any configuration that would allow the user to see the files inside the folder1?