Below is a blog post summarizing the impact of that specific update and how it changed secure collaboration.
The 112624 Update: Redefining Secure Collaboration in OneDrive and SharePoint 112624
This post remains a cornerstone for understanding Microsoft’s "secure-by-default" philosophy. By moving away from complex account creation for guests and toward a more dynamic, identity-based verification model, Microsoft set a new standard for cloud collaboration that we still rely on today. If you'd like to dive deeper, I can help you with: Below is a blog post summarizing the impact
Detailed for external sharing in your tenant. identity-based verification model
: Intended recipients can actually get to their files without needing a Microsoft account.