Sorry for the loss of your VM file. Not only does it exceed the capacity of a normal OneDrive, but it breaks this rule...
Sync your Documents, Pictures, and Desktop folders with OneDrive
"File exceeds the maximum file size: OneDrive can't sync files over 20 GB. Remove these files from the folder you want to protect and then try again."
Looks like 1809 set it as default to protect the contents of those folders. But the feature couldn't handle it when a rule was broken. And your VM file now swims with the fishes.
It sound like a Kafkaesque data proteciton racket, I never asked for OneDrive to begin with. But anyhow I am genuinely happy that they pulled the update and that prosperity won't be talking of the Microsoft great October Document Purge (MODP). If they did roll it out over 150 or so million clients with a high percentage of affected systems then the amount of lost work would be mind boggling. Its probably a lot more then the hours spend on building the pyramids and going to the moon put together. Pulling it certainly avoided some bankruptcies and might even prevented some suicides.
I hope this worst case "near hit" will be study material for OS developers and will galvanized the patch testing processes.
Whew! I feel extremely lucky that I switched to Google Drive (out of cheapness probably -- 15 free GB and "unlimited" photo storage) and moved my needed/cared-about files there from OneDrive. Another salient difference between GD and OD is that GD doesn't strongly insist on a JunctionPoint/SimDir for MyDocuments, Pictures, Music, etc.
I feel that with that move (including turning OD sync off) I probably spared myself Robert Z's misery, and to add my 2 cents to this discussion: Backup is of course a great idea, but backing up Ghosted files ("On Demand" as they are called by OneDrive for a couple years now) is a bit of a minefield with almost all software (I use Acronis 2019 and haven't tested it with 1803 -> 1809 updates). I'm certain many Millennials on the OneDrive team weren't on the original Groove team from 2005/6 when MSFT made that acquisition, and could never have foreseen the "cloud-first" principal carrying to such an extreme such as the 1809 debacle implies, nor seeing Groove tightly integrated with the Operating System 10 years later.
Good luck to all who are impacted, and please consider waiting for Feature Updates (as opposed to Security Updates) to give them time to "bake" as so many different MS teams seem to be involved with the former, and testing is a bit more "rigid" on the latter. Again my 2 cents as an 'ex-Softie' :)