Office 2016 for Mac files now "forced" on OneDrive versus my harddisk

Since the latest update, the file open and saving is defaulting to the cloud OneDrive which is most irritating, and mainly causes me issues with my linked files. 

I disabled the autosave feature thinking it would help, but no luck.

Even my pinned files, pointed to the mac hard drive end up saving to the cloud 

Same issue with my linked files that systematically become "REMOTE" as location.

Thanks for the help.