Oops, I thought you were Hoyas97 in my last response to you.
Well, that's right, you must get them out of OneDrive for them to be computer resident only. Even using that Auto Save tab, actually the folder is removed from OneDrive & back to where it came from - I think. I should try it really. But I like them to be protected!
Are you saying they stay put, but their icon changes?
Edit 10/29: The folders & files are not removed. I had to move them myself.