Sharepoint Online: Custom Permissions for Folders in a Library

civir
civir used Ask the Experts™
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I am uploading files to a library that has different folders. I want different users to access the various folders.

Library:
 - Folder 1 (with Permissions to access User1 only)
 - Folder 2 ((with Permissions to access for User2 only)
 - Folder 3 (Access to all users)

Please advise how to perform this task via Sharepoint Online? I am trying but all users can view all folders still.
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