Our Org has given some of our users the new, non-admin permissions to transfer ownership of their content to other users.
These transfers require the recipient to have appropriate access to any groups that the item is shared with.
i.e. If the recipient can't share to one of the groups the item is already shared with, the item wont transfer and they receive this error:

This is all well and good, but we have been seeing this error on some transfers where the recipient has the appropriate access, and even when the content is not shared to any groups.
Has anyone else using these permissions seen this error when the recipient appears to have the correct group access?