KFM - Silent Folder Move doesn't work until user selects it

I'm trying to set up Known Folder Move using OneDrive, but it's not doing it automatically when a user logs in. The user has to open OneDrive settings and manually start backup.

I'm using OneDrive along with FSLogix office containers, with OneDrive caching enabled. I've configured OneDrive in GPO to silently sign-in, silently move, prompt to move, and prevent them from being moved back. I've installed OneDrive version 22.176.0821.0003 using setup.exe /allusers. These are my GPO settings:

• Silently sign in users to the OneDrive sync app with their Windows credentials: Enabled
• Silently move Windows known folders to OneDrive: Enabled
• Prompt users to move Windows known folders to OneDrive: Enabled
• Prevent users from redirecting Windows Known Folders to their PC: Enabled
• Use OneDrive Files On-Demand: Enabled

But here is what is happening:

• User logs in desktop first time, and OneDrive silently logs in the user successfully.
• OneDrive does not migrate Known folders and does not prompt user.
• User must launch OneDrive client > Settings > Backup tab > "Start Backup". Then the OneDrive client informs the user that "Your IT department wants you to back up your important folders", and clicking "Start Backup" will start KFM correctly.

It's my understanding that Silent Known Folder Move is supposed to be automatic without user intervention. I've checked the registry keys and all of them seem to be correct:

But under HKCU\Software\Microsoft\OneDrive\Accounts\Business1, it shows the "kfmFoldersProtectedNow = 0" so it's not engaging something.

So what do I need to do for Silent KFM to automatically work on first logon?