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How to Create Workflow in SharePoint Online to update Document Library Permissions on Upload

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I want a document library that can be used as a repository for student assignments. It should work that a student uploads their assignment to the document library. SharePoint should update permissions on that item so that only the teacher can view/edit the document.

I have looked at a couple tutorials that talk about creating a workflow and having it run as a different user with Full Control permissions on the Document Library. However when I try to follow any such directions I don't get access to the "App Step" icon in SharePoint Designer. I have enabled this feature at the site collection level, but to no further changes.

Is this something that is not possible with SharePoint Online?


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