Back in 2018 Microsoft announced that OneDrive in combination with UDP in exclude mode didn't work (Using Microsoft UPD disks currently requires use of the UPD 'include' mode configuration not the 'exclude' mode configuration. UPD exclude mode isn't supported currently as it doesn't work correctly (November 15, 2018) https://docs.microsoft.com/da-dk/fslogix/configure-office-container-tutorial )
We would like this problem addressed, as OneDrive is wanted by our customers in their RDS environments, but are being deselected in favor of DropBox and other solutions.
We need UDP running in exclude mode because of other applications that does not support include mode - as for now our only choice is to drop OneDrive.
FSLogix with OneDrive policy is inplemented in our setup, but it does not resolve this issue, as OneDrive still sees the OneDrive location as a network location when exclude mode is active.