OneDrive “Share” window stuck loading from File Explorer (works on web)

We are also getting this. The New share method works for the first few minutes after a reboot, then the old share method pops up and donuts forever. We can also close OneDrive and it defaults back to the new Share UI. A Trace showed it dieing in wintypes.dll and just waitng forever for an answer. Key here: The new UI seems to default back to the old one when it can't get a login/token of some kind, that's the donut. Sometimes you get lucky and the NEW UI crashes out with "Your cloud account could not be loaded" (German original: Ihr Cloudkonto konnte nicht geladen werden.") which seems to me to point more at the issue. I am GUESSING the new update removed a function somewhere and noone told the Win.Explorer developers..

Corp environment here, seeing the same thing.  Using Yogesh Khatri's OneDrive parser https://github.com/ydkhatri/OneDrive, I noticed 72 calls to OneAuthMSALWrapper::... repeated calls without successfully completing a login.  I'm wondering if it's stuck in a loop or failing silently? You can obtain your .odl files from %localappdata%\Local\Microsoft\OneDrive\Logs\Business1.  

Just things I'm personally looking at...

In a new .odl file (which is after I tried to share something when troubleshooting with the end user), I see that there is an FileSyncError::ErrorCode::UpdatePHStateSetInSyncBitFSPostponed error.  I am then seeing postponed messages which indicate retries too.   The UpdatePHStateSetInSyncBitFSPostponed error may mean OneDrive can't mark the file as synced and could be affecting the share dialog box. 

I then pulled the SyncEngineDatabase.db from the users appdata location %localappdata%\Local\Microsoft\OneDrive\settings\Business1 and found the user has a docx file that was created in the web version of Word. Apparently, OneDrive hasn't sync'd up and when the user attempts to share the very folder that also contains that file, it is causing a permanent failure/loop. 

OK, diving deeper, I pulled the most recent FileCoAuth-xxx...aodl file from %localappdata%\Microsoft\OneDrive\Logs\Common  and, in short, FileCoAuth can't resolve the URI for the very files it needs to share.  

So, I can either

1. Reset OneDrive 

& "%localappdata%\Microsoft\OneDrive\onedrive.exe" /reset

2. Unlink/relink the account in OneDrive settings

3. Open that particular file and ensure it has synced locally (or right-click and keep on this device)

I have to wait for the end user to return tomorrow. Since Naman says that routing is through SharePoint (I thought it always was?? Guess I don't pay attention), there could be a URI retrieval or mismatch issue and we may see more of this going forward.

As users report that it is part of recent Microsoft 365 / OneDrive / SharePoint updates Folder sharing and permission management are now intentionally routed through SharePoint and Microsoft Teams instead. To centralize sharing and access control in the web-based collaboration experience and to reduce sync and security issues caused by creating sharing links from Explorer.

Due to this situation. I recommend you go to Feedback community to vote this similar feedback: (find out similar feedback, if not, provide the feedback forum link Ideas · Community). Our product team is in charge of the site, and they constantly check customer reviews and feedback, The higher votes, the more attention the related team will pay on. And a lot of the features are developed and improved based on customer feedback.  
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Microsoft has recently updated OneDrive’s sharing system, which may affect how share links appear, especially for large files. While the traditional “Copy link” option might no longer be visible in some cases, you can still share large files reliably using the following solutions:

Recommended Methods for Sharing Large Files via OneDrive

1.Use OneDrive Web Interface

• Go to https://onedrive.com, locate the file, and click Share > Copy Link.
• Adjust permissions if needed (e.g., “Specific people” or “Can view”).
• This method bypasses glitches in the Windows Explorer context menu and works reliably for large files.

2.Share via Folder Link

• Place the large file in a folder and share the folder instead.
• This avoids bugs with direct file links and allows future additions under the same link.
• Be sure to set permissions to “Can view” if you want read-only access.

3.Use Windows Explorer’s “Share” Dialog

• Right-click the file and select Share (blue cloud icon).
• You can enter email addresses or copy a link with customized permissions.
• This replaces the old “Copy link” shortcut with a more controlled process.

4.Compress (Zip) the File

• Zip the file using Send to > Compressed folder, then upload and share the .zip.
• Useful if the file is near the 250 GB limit or if other methods fail.
• Recipients will need to unzip the file after download.

5.Sync Status

• Ensure the file is fully synced to OneDrive (check for “Up to date” status).
• Unsynced files won’t generate share links.

6.File Size Limits

• OneDrive supports files up to 250 GB.
• Files larger than that must be split or compressed into parts.
• Most sharing issues are due to UI changes, not size limits

Please also check your organization’s sharing policies, as some settings may restrict external sharing or anonymous links.

I hope you find this message helpful. If the issue persists after these steps, please let us know any error messages you’ve received or recent changes to your Outlook setup. We’re here to assist you further