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David,
I have exactly the same problem, I've just started using Office 365. I can open only the files listed in the "Recently Used" (none of which are very recent) so effectively I can't use Excel 365. When I do a save as for a blank workbook it doesn't display my existing OneDrive folders.
Sorry I can't help you and by the look of it Microsoft Support aren't gonna be much help either.
David,
I did get some help from MS support, the problem might be related to the fact that I was using Excel 365 in the browser, not in the desktop app. I haven't had a chance to test this yet; I've been using Office 2013 which apparently I'll need to uninstall before I can use the MS 365 desktop app. I find the prospect a bit scary; if I uninstall it but still have problems with Excel 365 it'll cause me a big headache as I use Excel every day for my daughter's business.
I'd prefer to use the desktop app as it has extra functionality, but it seems to me that I should still be able to open files from the web browser version.
cheers
PeterD