I noticed an odd issue that I can't quite place my finger on.
A folder within a document library has been shared out to a user (with Edit access). The user tries to setup an alert with Alert Me. Upon completing the setup the user is notified they do not have the proper access to create an alert.
This would tell me that permissions do not include Create Alert. Unfortunately every group that I have within the site includes the Create Alert permission. Full Control all the way down to View.
For SharePoint Online what I am missing to allow users of shared folders the ability to setup alerts?