I'm testing setting up a Distributed Collaboration with a consultant organisation. They are the host, as they have AGOL, and we are a guest as we have Portal.
We set up the collaboration so that the Guest receives content only. The Host tested adding a csv file to the collaboration group and I was able to download it from the Guest group with no issues.
However, when they added a Hosted Feature Service to the group (empty, shared only to the group), I (as the guest) am prompted to log into ArcGIS Online in order to access the item:

A quick check on the ESR workflow and I found this section on Copy vs Reference:
https://doc.arcgis.com/en/arcgis-online/administer/create-a-collaboration.htm
Choose one of the following to specify how hosted feature layers will be sent to the collaboration workspace:
- References—Collaboration participants will receive live access to feature layers. If the item is secured (not shared with everyone), users must sign in to the origin environment to access the item.
- Copies—Collaboration participants will receive a copy of the feature layer, and updates from the origin will be synchronized at a scheduled interval defined by the guest.
Note:
If you choose this option, the collaboration guest must set a sync interval in the collaboration workspace, and sync must be enabled on each item in the collaboration. A copy of the feature layer and its data will be extracted and published as an item in each recipient's environment. Once the item has been created, subsequent synchronizations will only sync updates of that item.
Am I missing something here? Or is this red text essentially telling me that Guests can't access Host content as References unless they have login credentials for the Host organisation or if the layer has Public access enabled? If so, what on earth is the point in Distributed Collaborations??
Furthermore, if the only option that works is to set layers as Copies rather than References, then we'll be duplicating the data and increasing the load on our Portal, negating the benefit of the Collaboration in the first place. If I wanted to copy data, then I could just use AGOL Assistant.
Surely I'm missing a key point here?