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‘Editors can not share’ flag option is available inside of Drive audit, it allows super admins to select files and to enforce this policy.
This improves overall data security because the owner of the docs will receive requests from editors who want to share the doc with others.
By default when an owner of a document shares a file to an internal or external editor, that editor will be able to forward and share the document to other editors and readers.

Select ‘Drive audit’ on the left-hand side.

Click on the custom apply filter button then search for a set of docs/folders you want to audit.

Once the filter is applied and the result is found, click on File Operations button, then select Enforce “Editors can’t share” option for all of the docs/folders within the filter you’ve applied.

When the option is selected  “Enforce Editors can’t share”  – You will receive this warning message meaning that the operation cannot be undone if selected and confirmed (for the filter applied)

Select to confirm the action will occur and can be checked in Admin log.

Editors to be able to share the files/folders they will require to get approval from the file owner.
The owner will receive an email: You are the owner and have been asked to share this item with user@yourdomain.com.