Project Sharing Can Be Enabled When User Cap is Set
Turning on the groups user cap feature forcibly disables project sharing. (It also forcibly disables inviting groups from outside the hierarchy.)
However, it is possible to re-enable project sharing under some circumstances - if the only model being saved is the namespace / group. This is because project sharing being forcibly disabled is enforced via a callback on the NamespaceSetting model.
So for example, if the only change being made to the group settings is to uncheck the Projects in $GROUP cannot be shared with other groups checkbox, then this will save successfully and re-enable project sharing. This is demonstrated in the video below:
Edited by Jason Goodman