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I'm trying to create and share a link publicly for a document inside a OneDrive site.

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I've set the sharepoint share settings to allow sharing with anyone publicly in the Office365 admin centers/sharepoint/sharing section

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Is this a bug with sharepoint?

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A few options/possibilities to consider here:

  1. If you've made this change within the past 24 hours, it may still be pending to propagate to the site collection level in your SPO environment (similar to other changes made in the admin console).
  2. Check the sharing settings at the site collection level in which you're working. I would recommend doing this in two places. First, in the admin console's main screen where your site collections are listed, use the 'Sharing' option in the ribbon above the list and check to ensure the settings there match/inherit from what you've set in 'Sharing' page. Second, at the site collection level's Permissions page, check the 'Access Request' settings option and ensure that the sharing settings there support this. Broader description and screenshots available here - Anonymous Sharing in SPO
  3. If those settings check out, you can also use PowerShell to update this Set Anonymous Access Using PS

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