Nextcloud federated addressbook user search not working

Nextcloud version : Operating system and version (eg, Ubuntu 29.04): 25.0.13 (federated with 28.0.3)
Apache or nginx version: Apache/2.4.29 (Ubuntu)
PHP version (eg, 8.3): 7.1

The issue you are facing:
I have two Nextcloud instances one running on version 25.0.13 and the other one on 28.0.3. They have a working federation (federation state is green). The nextcloud on 28.0.3 uses ldap for retrieving the users and the 25.0.13 has only local users.
When trying to share from 25.0.13 nextcloud to the 28.0.3 nextcloud it works when providing the whole user string ( But the search won’t suggest users from the federated nextcloud only from the local one. And it is not possible to explain to the users that they have to use the full user string for sharing with the federated nc and it is very likely that users will have typos in there.

Is this the first time you’ve seen this error? (Y/N): Y

Any help would be appreciated.

Best regards,