Answer: It discreetly opens a "create share link" dialog in another part of the program (where I can't see it), and DOES NOT COPY ANYTHING TO THE CLIPBOARD.
To a casual user, it appears successful though.
And that's how I pasted a malicous spam link I was reporting earlier into a Teams chat when I was trying to share a SharePoint file from another chat...
@Alex that’s exactly how I feel. Using Windows 11 is like going back in time several years, if you ignore the fancy theme.