Below you will find pages that utilize the taxonomy term “Default Sharing Link”
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Configuring Default Sharing Links in SharePoint: Ensuring 'Specific People' Access
Introduction Updating the default sharing link from the User Interface at both the site level and tenant level to Specific People (only the people the user specifies) might not work always as expected. This issue could be due to the outdated setting DefaultSharingLinkType being updated behind the scenes.
I tested this on a Team site by updating the default sharing setting from the SharePoint Admin Centre to “People you choose”. However, the default sharing link for new sharing links did not reflect this setting.