A Microsoft file hosting and synchronization service.
Hi,
Thanks for posting in our community.
Based on the detailed description, we do understand the inconveniences it caused on your side with the latest updates in OneDrive for Mac desktop app that Files On-Demand will be enabled automatically. Kindly check the statement in the official article: Save disk space with OneDrive Files On-Demand for Mac (microsoft.com)
For the possible workaround currently, it is suggested to right-click on the offline-needed files/folders and select 'Always keep on this device'.
For this updated setting, we do understand that it would be better if there have another button/option to turn off the Files On-Demand feature instead of selecting all files/folders manually. As forum engineers here have limited resources to the building of OneDrive apps, kindly submit your feedback to the related OneDrive for Mac product team so that they can get informed that this can cause some inconveniences for users who need files locally when offline. See: How do I give feedback on Microsoft Office?
Your understanding is highly appreciated and hope a nice day for you!!
Best Regards,
Mia