OneDrive for macOS - SharePoint synced folders in Finder lose AutoSave functionality

Hi,

We're experiencing a recurring issue across multiple customers using OneDrive on macOS and would like to know if anyone else has seen similar behavior.

Issue description

Users sync SharePoint document libraries to Finder using the OneDrive sync client for macOS. Initially everything works as expected, including AutoSave in Microsoft 365 desktop apps such as:

• Excel
• Word
• PowerPoint

However, after a few days, AutoSave stops working for files located in the synced SharePoint folders. Users may receive synchronization-related messages, version conflicts, or notice that changes are no longer saved seamlessly to SharePoint.

Troubleshooting already performed

We have tested the following multiple times:

• Reset OneDrive (using resetonedriveapp.command)
• Clear OneDrive credentials from Keychain Access
• Unlink OneDrive
• Remove all locally synced OneDrive/SharePoint content
• Re-sync SharePoint libraries from scratch
• Uninstall OneDrive and reinstalling OneDrive (Standalone version)

After doing this, the issue is typically resolved temporarily, but it returns again after a few days.

Additional observations

• The issue has been observed across several different customers and environments (some just using security defaults and some with custom configurations).
• We have not identified any common denominator regarding SharePoint libraries, tenant configuration, or Microsoft 365 apps.
• OneDrive synchronization generally continues to work, but AutoSave integration with Office applications eventually breaks down.
• The problem appears specific to macOS.

Questions

1. Has anyone else experienced this issue?
2. Is there a known bug affecting OneDrive for macOS and SharePoint-synced libraries?
3. Have you found a permanent solution or root cause?
4. Is Microsoft currently investigating similar reports?

Any insights, workarounds, or references to known issues would be greatly appreciated.