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This is specific to the modern list experience in on premise SharePoint Subscription Edition. I have a library that is prompting two end users to supply their credentials. They hit cancel and continue on working without much of a hitch. It prompts them every time. This only happens when the list experience is modern. If I set it to classic experience, there are no prompts. It also only happens on one site only. I granted the same users' permissions to one of my sites using the modern experience and they are not prompted. Note: I had the client attempt this on a different machine and logged in as themselves. Same issue. Other end users with exactly the same credentials have no issues at all.

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This is a very strange phenomenon. Remove their permissions and then invite them again to see if the same phenomenon occurs.

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  • I did that and a host of other troubleshooting steps. I have a solution I will post below. Thank you for your comment.
    – Sean
    Commented 21 hours ago
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Due to limited access permissions to specific areas of the site where my client is missing use remote apis, I had to disable the "Limited-access user permission lockdown mode" site collection feature. Once done, the client is no longer being prompted. Site Settings > Site Collection Features > Limited-access user permission lockdown mode > Deactivate. Note: There may be folks who authorize anonymous users, where this may not be feasible.

Per my case engineer (use at your own risk): This is a legacy publishing feature and not compatible with modern UI.

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