New OneDrive client doesn't sync directories with a '#' in it's name

Copper Contributor

I am running the 'latest' OneDrive client version 17.3.6944.0627 on Windows 10 Enterprise Version 1703 build 16232.1000 (and removed Groove.exe, just to be sure). I selected to sync the OneDrive for Business directories. According to KB3125202 (updated July 11th), only the characters <, >, :, ", |, ?, *, / and \ are not allowed, along with some specific names like COMx, NUL, AUX, etc.
So why do I get "The name or type isn't allowed." for these directories? They are part of a Node.js modules directory, BTW.

If placed in OneDrive personal, it syncs just fine, but I want to move away from OneDrive Personal, for everything except photo's.

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