Resharing the folder does not refresh readonly attributes for nested folder and files

The following test case sometimes exposes the issue but most of the time not:

1. User1 DM: Create a folder structure folder1/folder2/folder3 and files folder1/file1.txt, folder1/folder2/file2.txt, folder1/folder2/folder3/file3.txt
2. User1 DM: Share folder1 to user2 with 'Everything' permission
3. User2 DM: Register folder1 as sync root.
4. User2 Drive: Start drive and wait for folder1 to sync.
5. User1 DM: Reshare the folder1 with readonly permission.
6. User2 DM: Register folder1 as sync root (if unregistered).
7. User2 Drive: Wait for drive to refresh the shared folders & files
8. User2 Drive: Check if all the files under folder1 have read-only attribute set.

Actual Result: folder1/file1.txt has read-only attribute set. But file2.txt, file3.txt does not have read-only attribute set as these files are not direct children of folder1.

Expected Result: All files (file1.txt, file2.txt, file3.txt) have readonly attribute set in the file system.

In order to highlight the issue please find as attachment a python script