If you want to give specific teams access without making all folders public, and ensure that sheets are not accessible by default, you can learn more here:
Simply put, you can follow the direct steps:
Step 1: You can place all files under a main folder and manage permissions all at once by managing the parent folder, as shown in the “Demo” folder in the image.
Step 2: select parent folder and click ‘Edit permissions’
Step 3: Remove the “All Users” team permission. That should resolve the issue.
Additional Information, You can just give the permission to a team and everytime invite the people to speicific team then they will automatically get the corresponding permission. please see the follow pictures.
Step1: create your team under ‘setting - organization’
step 2: click the edit permission
step3: add your team with specific permission
step4: Invite members to a specific team through a designated team invitation link. With this, you no longer need to manually set specific permissions for each member.
Lastly, if you do not want members to see each other, you can also enable the “Hide other teams and members in Contacts” button.