Sharing with everyone option will help users to share without depending on permissions. That will be applicable for “All authenticated users” and “all users in tenant” in the sense “Everyone” and “Everyone excluding external users”.
By default sharing option will be available for SharePoint 2013 site created using existing template. But when we create a site using site template or a solution, try to share the site we’ll get an error saying that “This web template required that certain features be installed, activated and licensed. The following problems are blocking application of the template:”
After googling some time i have found the solution from office blog URL. All authenticate users is now Everyone. So these settings will not be automatically updated. We have to activate a feature to fix the issue. To activate the feature we need to run the Power Shell commands below,
$siteURL= “URL Of the Site Collection to activate the feature”
$site = Get-SPSite $ siteURL$site.Features.Add([System.Guid]"10F73B29-5779-46b3-85A8-4817A6E9A6C2")
Here 10F73B29-5779-46b3-85A8-4817A6E9A6C2 is the GUID of the feature to activate.