I am having a crazy issue that a number of list items in a large list are inheriting their permissions from the parent list and not the folder that they are in.
Is there a programmatic way that I could correct this so that all items in the list inherit their permissions from the folder they are in AND NOT from the list.
I know this might sound crazy, so I will state it clearly. The folders have broken inheritance with specific permissions. But the items in the folders inherit their permissions from the list. I have confirmed this in the UI and via the Server Object Model.
If anyone has EVER seen this happen before, please add a comment to my question. I am quite curious about what you did and if you were able to find a root cause.