Ok, fixed it.
SUMMARY
• Created new parent folders in the Home folder, not inside the Documents folder.
• Copied stuff to them
• Appled sudo chmod -R +ai ... setting (see below) that I've used since 2020
• Shared the new folders
• Tested with network users ok
• Restarted the server and tested ok again
LONG VERSION
There are two shared folders containing numerous child folders and files, e.g., Shared_A and Shared_B.
They were in the Documents folder. In Terminal, I saw their chmod settings by using the ls -le command (both "els"). I saw the permissions that I applied with the sudo chmod -R +ai 'group:topGROUP .... command BUT I also many other lesser ACL permissions on the same folder. I considered using the ACL remove index command but changed my mind and did this instead:
(1) Created new folders Shared_A and Shared_B in the Home folder, not in the Documents folder.
(2) Moved everything from the problematic originals to the corresponding new folders.
(3) Ran this in terminal
sudo chmod -R +ai 'group:topGROUP allow
list,add_file,search,add_subdirectory,delete_child,readattr,writeattr,readextattr,writeextattr,readsecurity,file_inherit,directory_inherit'
'/Users/tmadmin/Shared_A'
and
sudo chmod -R +ai 'group:lowGROUP allow
list,add_file,search,add_subdirectory,delete_child,readattr,writeattr,readextattr,writeextattr,readsecurity,file_inherit,directory_inherit'
'/Users/tmadmin/Shared_B'
(4) Viewed the new folders' permissions with ls -le in Terminal. They looked perfect and clean.
(5) Shared the two folders with appropriate user groups.
(6) Tested ok. We tested the heck out of it by having one user create a new folder and doc in a shared folder, then had the other user change the name of that new folder, the name of the new doc and the content of the new doc, then had the other user change it again to something else, back and forth about 5 times -- all ok.
(7) Restarted the server (M4 Mac Mini) just in case.
(8) Tested more ok.