Does anyone know what this restriction is and how to become a noble with another’s stronghold? I found rare merchant selling a legendary sailor at a random stronghold but cannot purchase it due to this restriction. Any information here would be greatly appreciated, thank you!
Some players have restrictions on who can buy maybe. I know there are options that limits things to only on friend list. This may be the case here.
Ye its the restriction some players put on their strongholds. Just leave a stronghold if you encounter that and maybe ask in area chat of islands if people have that merchant. Most ppl are helpful
Where can i restrict this?
Top left of your stronghold screen should be a place to edit name and permissions.
Thank you! And why this does exist? Can anyone steal things from my stronghold? 
To make exclusive clubs. Also merchants sometimes sell valuable things so you don’t want Randoms taking it when you’re friends might need
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Steal? They can harvest your materials if you have the setting on to allow them to harvest your materials.
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Like my chest is public? Or how so?
The life skill areas are limited resources that replenish daily. If you have unrestricted access they can harvest those resources.