Oh my. I've been having major problems with OneDrive on an external volume since upgrading to Monterey. I see now this has beed a problem since before February 2022?! And still no solution? Our entire university chose OneDrive over Google for cloud storage, and It's been a disaster for mac users. I don't think Microsoft is actually paying attention to what customers want.
It's not complicated. We want to store lots of data on an external drive, and have OneDrive sync it to the cloud, so it can be accessed remotely. It's simply not acceptable to require the data to be on the boot volume (which is often too small), or be cloud only to save space. It MUST remain an option to keep all the files locally on an external drive (ejectable, moveable, separate from system).
@Ankita Kirti