Got the same issue on my MacBook Air M1. Also just tested the newest version of OneDrive as well (22.111.0522.0002 from the 3rd of June) but just experienced again another kernel panic, even without downloading a lot of files.
Log:
panic(cpu 1 caller 0xfffffe002c09b430): initproc exited -- exit reason namespace 7 subcode 0x1 description: overflow of service activation count during activate. Managed:1. Count:32767. Service:'user/502/com.apple.xpc.launchd.unmanaged.OneDrive File P.852'
Debugger message: panic
Memory ID: 0xff
OS release type: User
OS version: 21F79
Kernel version: Darwin Kernel Version 21.5.0: Tue Apr 26 21:08:29 PDT 2022; root:xnu-8020.121.3~4/RELEASE_ARM64_T8101
I will an older version now. I really hope Microsoft is working hard on this fix!