mgo-design
"This most closely replicates the experience of having Files On-Demand disabled" sounds like they aren't allowed to disable Files on demand via preferences and have to work around it.
This is exactly what Microsoft would like everyone to believe. However, in my opinion, this is absolutely false. How do we know this is false? Just look at Google Drive.
Google was faced with exactly the same issue as Microsoft and months ago released a new Google Drive app based on the same File Provider framework. However, unlike Microsoft, Google chose to offer users the "experience" of syncing files like it's been done for over two decades. With Google Drive I can chose to sync files to a folder I own on any drive, internal or external. There are two options: Stream files or Mirror files. That's it! It couldn't be simpler.
I would be astonished if Dropbox doesn't follow this same approach. Microsoft stands alone in requiring that their files on demand "experience" be enabled.
It appears to me that Microsoft went all in on the File Provider framework, likely jettisoned perfectly good syncing code in the process, and is now paying the price. Hence, they have to now add additional complexity to a system that's already seriously broken. Microsoft is delivering an "experience" that feels rushed as the old macOS kernel extension is weeks away from being deprecated.
If there's any finger pointing to be done, it's to Microsoft.