Detail on File sharing Permissions in Public, Closed Groups

I would like to share files (attachments to items) with group members. This means I would like to allow group members to read files added by other members in the group. From https://www.zotero.org/support/groups it states groups with Public, Closed Membership: 'If administrators enable file sharing, group members can access and share files in addition to references.'

My group has Public, Closed Membership but cannot find any information on how to enable file sharing.

In Library Settings there are File Editing options where I can select 'who can work with files stored in the group' from: Any group members, Only group admins or No group file storage

But this option seems to suggest that if file editing is enabled in a group library with Public, Closed Membership then the permissions given not only offer file sharing but also allow members to create new files, update(replace) files and delete files, which may be too permissive for my needs if that permission extends to file editing of other group members files as well... but maybe those permissions are restricted to members own files added to the group?

It's not clear how these permissions work in a group library with Public, Closed Membership. If group members have full editing permissions on their own files but can only read/access other group members files that would be fine, but it isn't clear to me if that is how the permissions system works in this scenario.
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