Invalid Extra 100 rings when Life Sharing is set Infinite

If Life Sharing is set to Infinite and someone collects an extra life, all players get 100 rings
(also what's the point of collecting lifes if they're already infinite?)

Maybe because it's giving you 100 rings since you already have a maxed life counter?

This is intentional behavior, and you've basically already laid out the reason in your original post: When infinite lives are set, 1ups have no intrinsic value. To compensate for this, 1ups will grant 100 rings whenever lives are set to infinite.

I will point out that ringslinger gamemodes have used 1up monitors in exactly the same way, so this is not exactly a new precedent.

CobaltBW said:

This is intentional behavior, [...]

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Is it also intentional that it gives 100 rings to every player, not just the "awarded" player? (I can't see how it would be coded to give 100 rings to multiple players by accident, but I also don't see what the reason would be for making it that way, since it's "infinite" lives, not "shared infinite" lives.)

Technically that is working as intended. The reason is that 1up monitor rewards are a server toggle, e.g. all players receive it, or only the one player receives it.

Whether it's good behavior is debatable, since all players don't currently receive rings when 10-ring monitors are popped.