Add Shortcut to Files fails

Same issue here. All worked fine until a few weeks ago. Since then, I checked to see if the functionality was restored or if there is any post from Microsoft at least acknowledging there is a problem and just crickets. Total ignore. Using the browser is fine for some folks but when you have to deal with tens and hundreds of files, it is just a big pain compared to having the files in the My Files and thus synced down to your computer so you can use Windows Explorer rather than the very clunky OneDrive browser functionality. Talking about that, it amazes me how little improvement was made to browsing files in OneDrive online. The only major change was for pictures but that has nothing to do with traditional or non-picture file management. Such a shame!

I am having this issue now too. On 2 different M365 subscriptions. It started impacting 1 account roughly 10 days ago. Now it has just started impacting a 2nd account. Completely crippling my ability to work off-line when traveling since the shared folders are no longer showing as synced files, but as an internet shortcut.

I would suggest we all start flooding Microsoft with this issue. I've reported and filed a ticket here:
msodsupport_at_microsoftsupport_dot_com

I am struggling to resolve the same issue that you all described. Anyone found a res? thanks

 I am experiencing this as well on one of my family's machines.

The workaround here works for me but is very clunky.  I set it up for one folder, but have several and don't want to go through the trouble of setting up the others.  

This also happened to my wife in the past week or so, on two of her Microsoft accounts (one in the Microsoft 365 Family group, the other not part of the group).

This happens in both Edge and Firefox browsers, on two PCs, one running Windows 11 Pro, the other Windows 10 Pro.

She can share OneDrive folders to me and I can add them to my folders without this error. Her OneDrive "Share" menu in the browser looks different to mine. My guess is something on her Microsoft account or profile is different.

She has a possibly related OneDrive problem.

A few weeks back, she also started encountering the OneDrive problem where existing shared folders previously added to her "My files" were changed to internet shortcuts. 

What was previously a local folder on her PC has been removed from her PC and replaced with the shortcut which now opens the shared contents in a browser. This is useless to her because she needs to open and update the shared file in OneDrive, nott work with downloaded files, or the files from within the browser. She's running

I've had to try help quite a few other people have the same issue.

I've logged a ticket with Microsoft for this.

Please Microsoft, any advice?

In my case, it is even worse.

OneDrive Shared Folders No Longer Sync to File Explorer.

Shared folders in OneDrive Personal accounts no longer sync directly to File Explorer, even when both users have Microsoft 365 Family subscriptions and active OneDrive desktop apps.

Previously, when someone shared a folder via OneDrive, the recipient could click “Sync”, and the folder would appear in File Explorer — fully integrated, offline-ready, and easily accessible like any local folder.

Now, shared folders only appear as shortcuts (via “Add shortcut to My files”), and:

They often fail to add (e.g., “1 shortcut wasn't created” errors),
Or they add as web links that open in Edge, not folders synced via the OneDrive app.
EVEN doing that, my Microsoft Edge remains blinking for some reason. See the screenshot below. I restarted the browser, the PC, everything. I have plenty of space. And I am sharing a folder with my wife, as some of you.

This is frustrating beyond the early days of raw open-source and low-quality options available in the early 2000s.

If a family subscription cannot share a folder anymore, the whole family subscription loses its sense.

We're having a smiliar issue.  Folder shared with me, both accounts have plenty of space. The folder is showing up as a shared folder in Onedrive online, but when I try to add shortcut to my files, it says, "1 shortcut wasn't added", so I can't access this folder on my computer. I was able to access it 2 weeks ago.

While I had succsessfully mapped some shared folders they all disappeared and when I tried readding them, I get the same error: 1 shortcut wasn't added.

Seems like a huge issue right now:
OneDrive – Shared folders can no longer sync locally since yesterday - Microsoft Community

I am encountering a similar problem.
I had a shared folder mapped in my file explorer for roughly 8 years without any problems. Suddenly, it disappeared.
When I tried to re-add it, I get the same message box, saying that '1 shortcut wasn't added'.

Is there any solution? I do not have a OneDrive folder that is named the same (I even manually created one to double check that) and removed it again.

This also happened to me just recently. There are several folders shared to me which I added to my files as shortcut 2 years ago. Worked perfectly fine until just this month, the shortcuts can't be seen on my folders list on my Mac. I accessed OneDrive through edge browser and iphone app, saw that the sharing is still active. However, I'm getting the same message when I try to re-add as shortcut: "1 shortcut wasn't added"