Folders Shared with me are syncing as internet shortcut in OneDrive on Windows PC

That's exactly what I experienced and a shared folder in OneDrive in File Explorer (Win11) with over 200,000 files "disappeared". I could still see the entire folder hierarchy in OneDrive Online (viewed in a browser). The files and folders are still there, just very cumbersome to access via a browser.

The "Add Shortcut to OneDrive button" didn't add the shared folder back to OneDrive as a folder in File Explorer - it is now only a link to the shared folder online.

I tried the workaround of mapping a network drive to the OneDrive folder (something like https://d.docs.live.net/XXXXXXXXXXXXXXXXX/YYYY/), but file transfer was like 1% of the speed of before, so this was useless.

If you have Admin access to the account(s) sharing the OneDrive folder, here's a workaround to see the shared folder in File Explorer again until MS fixes this. Note that this procedure will not work exactly like this if you do NOT have access to the user account that is doing the sharing.

• Create another user account in Windows: Start -> Accounts -> Other Users -> Add account -> Enter the Microsoft Account credentials for the account (User2) that is sharing their OneDrive folder (it will be created as type User by default but can be changed to an Administrator account)
• Log in to the new account: Ctrl-Alt-Del -> Switch user -> select at bottom left corner and enter credentials (biometric/Windows Hello and 2FA all works too)
• In OneDrive in File Explorer (for User2 - the "new" account) you will see all the folder and file names, but they will not have synced from the cloud to the local machine (note the disk could run out of space if you sync everything)
• Share one or more folders with yourself "primary user" on your machine and give your "primary user" account read/write (or full) permissions to the folder. Now you can access all the files in OneDrive for User2 from File Explorer for User1 (the primary account)! You're not going to use the "share", but setting the permissions will make it easier to access the files for User2 from User1.
• Still for User2: In OneDrive settings set "Manage Backup" depending on which files you want to sync from your computer to OneDrive. Most likely, what you're trying to access will be in the Documents folder so you won't have to "backup" for Pictures, Desktop, Music, Videos - but there's no harm in checking them all if you're still following.

Now log in to your primary (User1) account again.....

• Ctrl-Alt-Del -> Switch user -> select primary/User1 at bottom left corner and authenticate
• In File Explorer navigate to C:\Users<User2>\OneDrive where you will see all the "missing" folders and files again. They won't be displayed under "User1 - Personal" (i.e. in the OneDrive section of File Explorer), but you can access all the shared folders and files again!
• In File Explorer, right-click Home -> Pin current folder to Quick Access to make it easier to find the shared OneDrive folder again.

WARNING:

• Your disk could fill up IF all the folders and files are set to sync. There are plenty of notes and videos online explaining how OneDrive syncing works, so refer to those as necessary - the instructions won't be repeated here.
• You may have to remain logged in as User2 if you want a lot of folders and files to sync to the local disk, and you may have to Switch Accounts periodically to ensure that all syncing is completed.
• Backup your data to en external disk! The ROBOCOPY utility is an easy way to keep adding only new files/folders and changes to the external disk (lots of info and examples online)

There is no solution. The accounts are being migrated and until the sharing and shared to accounts are both on V2 then they will remain shortcuts. They will revert back once migration has completed. There is no way to know how long it will take either and Microsoft will not comment on this.

Came back today. After the update which I could see with OneDrive processing 30,000 files, I had to delete the old folders that had become URL's and the on OneDrive web/shared folders, select add 'shortcut to my file's' and they started to resync back to normal. 2.5 months of disruption!

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