Public snippets work exactly like internal snippets as the request for a snippet, when set/created to be public still needs authentication.
Public snippets should be actually public.
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I have the same issue, below is the output from production.log
Started GET "/snippets/16" for 127.0.0.1 at 2014-10-22 13:57:51 +0100Processing by SnippetsController#show as HTML Parameters: {"id"=>"16"}Completed 401 Unauthorized in 2msStarted GET "/users/sign_in" for 127.0.0.1 at 2014-10-22 13:57:51 +0100Processing by SessionsController#new as HTMLCompleted 200 OK in 476ms (Views: 71.5ms | ActiveRecord: 3.5ms)Started GET "/" for 127.0.0.1 at 2014-10-22 14:00:01 +0100Processing by DashboardController#show as HTMLCompleted 401 Unauthorized in 1ms
So further on this, when accessing the snippets, you can see a list of the public snippets (i.e. going to https://gitlab.com/snippets as an example), as see in the image below, but once you click the links, it asks you to log-in
Have just updated my installation to 7.4.1, that has indeed fixed the public snippets issue, But now if I click my name in the public snippets section, it lists all of my snippets. When I click the private/internal snippets, I can't view them, but nevertheless I shouldn't see that list. https://gitlab.com/gitlab-org/gitlab-ce/issues/704
Edited: It's the internal snippets are appearing, and they shouldn't
Since 7.4.0 the title of newly created internal snippets is exposed to people who are not logged in.
The contents of internal snippets is not exposed, and private snippets are not affected.
We will fix this in 7.4.2 which will release today, October 24.