I've read the latest update as of 2/1/2022, and it seems to contradict the previous post concerning sync root and the cache path in the following way. The previous post stated:
"OneDrive tries to maintain as little data here [cache path] as possible, and instead prefers to keep data in the sync root. As such, file data is not generally kept in both locations unless a file is marked as “Always Available on This Device.” In that case, the file’s data will sometimes be retained in both the sync root and the cache, but the files will be linked using a clone, so they do not occupy any additional space"
However, according to the table in the 2/1/2022 update, there is no case where the sync root has data and the cache path is dateless. The table implies that the primary location for downloaded content is the cache path, and that file content is only copied (or cloned) to the sync root when a file is opened. Further, only the copied/cloned files in the sync root are indexed for content searches via Spotlight, which some users may rightfully rely on (after all, that's one of the reasons Spotlight exists). In any case, why do these two points concerning cache path vs sync root seem to contradict?
I would also ask this: For users who want OneDrive to act ONLY as a file synchronization service, not as a "files in the cloud" service, wouldn't it make since to have an option that (1) always keeps files on the drive (in cache root, if the table is right) and never allows a "dateless" file while (2) providing direct access to the sync root as the one and only, actual, physical copy of the file on the user's drive? I don't know if that's a technical possible and how much that depends on Apple's File Provider platform, but that would seem to provide the most direct comparison to the way OneDrive used to work for users who prefer the previous paradigm.
Perhaps you should "simply" create a completely separate, alternative service -- maybe OneDrive Sync -- that does NOT offer on-demand files and does not need to rely on File Provider (if that's the primary issue with the way OneDrive now works) but instead uses the previous method to simply sync files between Macs and the Cloud. Users could then choose which OneDrive service they want.