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In SharePoint Online, I have a Document Library which is restricted to only members of a specific user group (call this Library /).

When a file located at /Folder A/Folder B/File.txt is shared (Read Only) to someone that normally wouldn't have access to Folder B, they are unable to access the file without a view that shows all items outside of their Folders (even if they follow the share link).

Is there a way to share the full file path along with the file (but not all contents of Folder A or Folder B?

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The best way to accomplish this would be to create a view with audience targeting and place the users for folder B in the group to access the view. Folders are just another list item in regards to permissions. Create a new security group with what permissions you want for the folder B users and apply audience targeting to a new view.

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