In order to set the permission in an object, you need to have the write permission on the object.
How are you trying to set the permission?
By code? By using Share?
Is this user trying to set the permission able to add a new file inside of this folder?
We need more information to be able to help you.
By using share.
The user was adding permission to file/folder in MyFiles Repository.
Don't you have any customization trying to change the Change Permissions action?
Usually, users without permission to change permission on an object cannot even see the action in the menu.
Ask for and offer help to other Alfresco Content Services Users and members of the Alfresco team.
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