Upload = /folder1/* !=group1 *
Upload = /* !=group2 *
Upload = * *
should be:
Upload = /folder1/* !=group1 *
Upload = * !=group2 *
That way, group2 won't be able to upload anywhere, and group1 won't be able to upload in folder1, but all others will be able to upload everywhere (where chmod allows it).
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