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I have set up some share file for multiple users and allowing them access only to folders that they have access to, this worked very well. But disk space was a problem, so I set up a bigger share on a different drive and set up the new share with exactly the same permissions.

The problem I face now is that all the users can see all the sub folders instead of seeing the folder that they have access to. (They cannot access the folders, but why are they showing up when the permissions should stop it from happening).

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This is normal for Windows. If you have read access to a (top-level / parent) directory, you can see the names and object types (e.g., is it a file or a directory?) of everything in the parent directory –– even if you don’t have any access to those objects. –  Scott Jul 17 '13 at 15:07

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Try looking for an option called ABE (Access-Based Enumeration) in Sharing settings. It's available since Win. 2003, I think. It hides everything from the user, it doesn't have access to read for.

Maybe this link will help too

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