• if you apply classification to a folder A all subfolder will be classified : Good
• You can remove that classificaiton to a subfolder B of the folder A : good
• if you upload a file to folderB , that file will be classified same as the Folder A (the parent parent folder) : Bad

This doesn't really make sense and create a new layer of waterfall access right but based on the classification this time. Which create duplicate in other areas and make it really hard for our employee to use classification.

Note that this also applied to automatically generated files like Box sign files, so classification that do not allow externals to access this file will block the external to review after the signature is done.

Proposition : Just apply the classification of uploaded files based on the parent Folder only.