It's great to hear you got your issue resolved. From what you've described, it appears that it was somehow caused by OneDrive.
But, it has nothing to do with that "Read-only" item in the Properties dialog. After applying your fixes, you will see that indicator is still the same. That's because it's not an indicator. It's just a control that will let you set or unset all files in the folder read-only. Note that it says "Only applies to files in folder". You can certainly use that control to ensure that all files in the folder are not set to read-only, but it will only show a clear box temporarily. After you close and reopen the Properties dialog, it will be back to showing a solid box with a horizontal line. So, that control will not even tell you if one or more files in the folder have been set read-only. It will look the same whether zero, one, or all files in the folder have been set read-only.
Microsoft should never have used a check box for this control because it frequently causes confusion, but it's been this way forever and they're unlikely to change it.
Also note that, even if the folder's read-only attribute were enabled (and it really isn't), that would have no effect on being able to make changes in the folder. It's the NTFS permissions and/or share settings that affect access, so the Sharing and Security tabs are worth looking at. The folder Properties General tab tells you nothing about access permissions.