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Sharepoint Online External Access - Unable to Drag and Drop, Use Open in Explorer, Create Folders/Delete files

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I need some help to figure out if this is a limitation from O365 Sharepoint online or a potential security problem. I have a document library in sharepoint which has unique permissions, I have an external user (non-company domain) to whom I have given full Control rights. The user was previously able to do all of the below but suddenly, it stopped working.

1. Drag and drop files on to document library

2. Use "Open in Explorer"

3. Create New Folder

4. Delete any existing file

I was able to do all of the above with same permission settings for company domain user. Is it a restriction imposed recently?

Environment Details:

IE 11, 32 bit

Sharepoint Online


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