On January 26 th , we released a new version of OneDrive sync (22.002) on macOS 12.1+ with an updated Files On-Demand experience. Prior to this release, OneDrive used a kernel extension for Files On-...
Updated Mar 01, 2022
Version 4.0
Blog Post
Ken_Tryon Hi kt. Yes, I'm familiar with the new implementation involving the shadow folder. As I understand it, the hidden .ODContainer (which you can set the location of) is a cache which is supposed to host the bulk of the files when you set OD to keep a local copy. This makes perfect sense, since you then have the best of both worlds (cloud access on boot drive, with local copy in external volume for backup, indexing, and use when offline, etc).
However, when I tested it, it doesn't seem to work properly under Monterey 12.5. Whenever I edited a file (by opening a virtual file in the boot directory then saving changes), OD would delete the older file in the cache and put the new (actual) file in the boot drive directory. I expected a background process to re-cache it immediately, but no. It just stays in the boot directory. Then I checked OneDrive online (via browser), and found the file was gone from the cloud! So instead of mirroring, it is just keeping the file locally (on the boot drive, not the external volume). I don't know if that is a bug or a feature, but it's definitely messed up, with high potential for data loss until they fit it.
I know Apple has thrown a lot of new requirements at the cloud service providers, but Dropbox and Google don't seem to have a problem dealing with it. In contrast, OneDrive seems to break each time there is an OS upgrade. This is the third time! First was dropped support in Mojave. Then we lost HFS+ in Big Sur. Now it's broken again in Monterey!? Unfortunately our campus has a major contract with MS, otherwise I would have walked away long ago...