This is a terrible update. I'm a photographer who uses Adobe Lightroom libraries on my MacBook Air to keep my RAW photos organized. My Lightroom import folder is in my OneDrive volume which was convenient for when I do import images from my SD Cards it was automatically was backed up to the cloud. Key was that the file's home was on my local drive and I would be able to periodically also backup those files to my external SSD via Lightroom, copy my OneDrive versions to another folder in the cloud that did not sync to my computer, then delete photos on my local drive without risk of also deleting in the cloud. I'd then have two copies of my photos - one on my external SSD and one on OneDrive in the cloud.
After this update (I upgraded to MacOS 12.1) all my files seemed to be deleted off my local drive so now I have to redownload them from the cloud in their original folders on my local drive. But once redownloaded, Lightroom can't move the files over to my SSD for some reason. I'm stuck.
Microsoft, fix this and give me back control of my data and files. This is a dealbreaker for me.