We agree and would love to see how many votes this gets.Dwight Del,ong commented
The solution, I think, is to provide an option to limit the tag search to only the folder or album shared. It seems that OneDrive expects to search all photos, which requires permissions broader than those allowed by the share. If a shared folder or album would limit its tag search to only the shared photos, or provide the option to stay within the share, then it should work.
But now, it's effectively useless. Clicking on a tag when you don't have admin rights immediately requires a login in. No good.