Situation: The client has shared a folder in SharePoint 365 with a guest having edit permissions. When the Guest Contributor opens the link, he is able to upload files and create sub-folders. But he cannot delete or rename any files or folders.
Troubleshooting: “Share People you specify can edit” and “Anyone with the link can edit” are different. If you chose “Anyone with the link can edit”, the external user can upload files/folders, but can’t delete or rename them.