On one of my Macs, I had "Always keep on this device" enabled for my main work folder in OneDrive. Things were working more or less OK for the past couple of days (minus the obvious, already mentioned annoyances) until just about now when OneDrive (or macOS) decided to mark all files and all folders again as not being downloaded. Total folder sizes have also disappeared (I tend to keep these on), but clicking on the cloud icons has helped for most of the folders and files as they were still in OneDrive's cache.
What worries me though, is that as I was looking through folders to try and figure out what was happening, I came across several corrupted files (JPEGs) that were fine on other devices and in the cloud but were corrupted on this particular machine (Preview wouldn't open the files, claiming that they are damaged). I had to replace them with copies downloaded from the web. This has a broader consequence as it essentially means that even with files "always kept on the device," we cannot trust the local copy anymore for any local backups (or anything basically).
Am I supposed now to manually go through thousands of files and folders, checking that they are OK? Just a single corrupted local file is enough to lose confidence in OneDrive (which has, in my case, been working perfectly for years). I'm also not too happy to move to iCloud Drive as it has its syncing issues now and then but has never corrupted or lost a file.