Windows Server 2008 r2 sharing removes local users - expected?

Question

Sharing a folder with specific domain user removes local users from folder.

Is this expected behavior?

1. Create new folder on server (does not matter where).
2. Add additional local users via basic security(right click, security, add) e.g. the MACHINE\Users
3. After confirming security has been updated, right click folder and "Share With" -> "Specific people"
4. Add a domain user.
5. View security settings and note that all the server level users have been removed and only yourself and the domain user remain.

I also replicated this on a windows 8.1 desktop.

There was no answer to Applying permissions for share removes permissions on local folder win 2008 r2 the answers posted did not directly answer the question only offer alternatives or ask questions that I hope are answered here.

I am not saying the "group" solution presented in those answers is in any way wrong, I just need to know if this is expected behavior.

Answer 1

No this is not expected behaviour. (This does not happen on my 2008 R2 servers.)

This has already been answered at the link you provide in your question.