Signals Notebook: How does "Read Dependent Share" privilege work in Signals Notebook

Read Dependent Share: Prevents a user from sharing an entity with another user unless there is a security policy granting at least Read access to that user.

Users with this “Read Dependent Share” privilege will only be able to share content with other users who already have View access via the security policy. 

For example, if Read Dependent Share is enabled for a group XYZ (in which both User A and User B are present) and User A wants to share Experiment A with User B, this is only possible if User B is granted at least read access on that experiment via a security policy.

(Please note: The general "Share" privilege overrides the "Read Dependent Share" role, therefore in order to have this functionality work as expected please uncheck "share" and select only "Read Dependent Share" for sharing option.)
 
On doing so, when any user from this group XYZ tries sharing the experiment it will be possible to share it with only those users who have read access via security policy and for other it will throw pop up error (Error reads "This item cannot be shared with [List User First and Last name] because they do not have the necessary access") 
 
Refer below screenshot for reference.