I have been given a work around.
After contacting microsoft their solutions was to navigate to the file from within the microsoft application.
Therefor if you would like to open an existing word document you have to first open word, File, Open, click on Onedrive, and then navigate to the specific file and open. All this must be done within the application you are planning to use.
If you have an excel file you want to open in the same folder you have to open excel, open, Onedrive and navigate to the specific folder. If you have multiple levels of folders this is a frustration and a time waster. Needless to say if you open the file
via finder autosave is off but once you save "offline" version is updated to the Onedrive server. I hope they find a solution for autosave to work from finder.