In the case of folders, the setting can't be reverted after the file is in My Drive.

Note: Files and folders in shared drives retain this setting when they're moved out of shared drives. You might do this for organizational units that work with confidential data or projects. To prevent shared drive members who have viewer or commenter access from downloading, copying, or printing files in shared drives, uncheck the fourth box.You might do this if you only want Managers to be able to share folders. To prevent Content managers from sharing folders, uncheck Allow content managers to share folders.You might do this for organizational units that handle sensitive data that shouldn’t be shared outside that organizational unit. To prevent shared drive members from giving non-members view, comment, or edit access to files in shared drives, or sharing these files with a link, uncheck the third box.If users aren’t allowed to share any items in Drive outside of your organization, this setting has no effect because it can’t override the sharing setting. This setting also blocks shared drive managers from adding external users as members. External users won't have access, even if you allow users to share files outside of your organization. To prevent external users from accessing files in shared drives, uncheck the second box.(Optional) Set the default sharing settings for new shared drives, and choose whether shared drive managers can override those settings.

Create shared drive google admin