I been asked to restring Sharing for the below from tenant level as there was a business reason to restrict users accidentally sharing site to all users or everyone, the below is the script i ran
Open SharePoint Online Management Shell
Run the below command to get it connected -
# OPEN SHAREPOINT ONLINE ADMIN PORTAL WITH CREDETIALS
Connect-SPOService -Url https://xxx-admin.sharepoint.com -Credential yourid.domain@site.co.uk
Once connected run the below code, appropriate for your need
• Hide “All Users” form the Sharing window or People picker for entire SharePoint Online
Set-SPOTenant -ShowAllUsersClaim $false
• Hide “Everyone” form the Sharing window or People picker for entire SharePoint Online
Set-SPOTenant -ShowEveryoneClaim $false
• Hide “Everyone Except External Users” in people picker (while sharing) for entire SharePoint Online
Set-SPOTenant -ShowEveryoneExceptExternalUsersClaim $false
Hope this helps...