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Issues when trying to save office documents using SaveAs Option from a folder in Document Librar

Hi I am having a strange issue. I have a user in Sp 2010 that has been only granted access to a particular folder in a Document Lib. Now when this users tries to open up a word doc from within his folder he can open just fine, when trying to do a SaveAs,a credential popup appears. Incase he cancels this pop up he is able to save the file into the folder.

Now when this user is given access to the whole document library in which the folder is contained, the pop-up goes away. This is a suprising behaviour to me becuase when the user had only access to the folder, security popup came up but not when he was given permissions at the library level. If I cancel this popup and hit saveas with a different name the document does still gets saved in the location. The status bar of the browser reads something like \\servename \\webDAVwww..\\sitename\doclib\\folder( to which the user has access). Press escape to cancel.

Also another interesting thing is that the ribbon at the top remains disabled when user has access only the folder.
Microsoft SharePoint

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busapps

8/22/2022 - Mon
livanescu

just a shot in the dark (it's pretty complicated to replicate the conditions):
in word, try File-->Options-->Trust Center-->Trust center Settings and then try to add your site to Trusted Locations (might have to check Allow trusted locations on my network);
in IE, Tools-->internet options-->Security--> make sure your site is in Local Intranet or Trusted Sites (preferably in Local Intranet); make sure Local Intranet (at least) has (in Security level for this zone) User Authentication set to "Automatic logon with current user name and password"
busapps

ASKER
This did not help. I have opened a case with Microsoft.
livanescu

let us know the magic, please...
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busapps

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busapps

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No further action on this question in several months.