Hi Roja,
The whitelist/allowlist in Confluence controls which sites are allowed to bypass CORS protections (for incoming links) and which sites can be used in some macros such as the HTML include macro. This should let you embed unauthenticated content via the HTML macro.
One snag might be if your Sharepoint instance requires authentication. If you navigate directly to the library, you might be getting access to Sharepoint via NTLM authentication (at the Windows level) and don't realize there's an authentication flow happening. Depending on the setup of Sharepoint, it's possible the HTML embed macro isn't able to use the same passthrough authentication, and you're getting a permission error from Sharepoint. This would be something you'd need to investigate on the Sharepoint side.
Authentication like this can be a bit tricky. And once it's sorted, you still might not love the way that Sharepoint content is displayed in the HTML macro. For these reasons, I'd recommend having a look at the Sharepoint apps on the Atlassian Marketplace. Many of these handle authentication for you, and usually offer ways to display libraries or content from Sharepoint a bit cleaner inside Confluence pages. Some even have features like two-way integration and search. Generally the experience will be better for users, and the setup will be less tricky for administrators and page creators.
Cheers,
Daniel
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