You are having to work JayFMSTechComm in a way that is cumbersome and open to error. What if you forget to switch the slider on/off? Either you end up with versions you need to delete manually, or you don't have versions when you need them. Plus that only works for Office applications. What about other formats? As you say, you have to delete old versions manually. That's OK for small numbers, but I have thousands of files with loads of versions created. So, your solution just isn't practical.
For instance, there are hundreds of audio files all with dozens of versions. Audio files don't need versioning. With the old way that Versioning worked, it was possible to switch it off for an audio files directory. Now, my OneDrive is littered with data-sapping automatic compulsory versions which are not needed.
You can find complaints about this in several threads and several forums. Microsoft have said they are going to change it, but that was a year ago.
Why they changed it in the first place is stupid and makes no sense as it reduces control for owners.
Given that we are paying for this service from Microsoft, and given that they admitted they needed to change things back to the way they were, why has it taken them a year to make zero progress?