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

You must work for Microsoft. Quoting a two-and-a-half-year-old article as an excuse is lame at best. This all worked in the past. It’s obvious that MS did something to break it. Shouldn’t take them a year to undo whatever they did.

In my group, everything has migrated to a single version. Two months have passed since the first problem with synchronization appeared. Now everyone can see each other's files and folders on their computers. But the problems with the transition are not only in the visibility of folders, I will try to list what I encountered:

1. when the problem appeared, at the beginning of the migration of the first group member, some of the latest changes in the files were lost. Although they were saved in the file versions. I had to restore them manually.
2. It is a big problem to download back all the deleted files from the computer, especially if this is measured in tens of gigabytes. The computer completely falls out of working order for several days, since everything slows down sharply when OneDrive is actively working. I can't even imagine who had to restore hundreds of gigabytes of data, or even terabytes.
3. After reverse synchronization, different users had similar folders with domains that differed by the computer name. The folders contained a similar set of files, but the files could differ in content if they were edited on different computers. It was necessary to bring everything back together.

On the useful side, I can say that I have greatly lost confidence in Microsoft and realized that you can't relax, no clouds will protect you from data loss, rather the opposite, you can lose everything and everywhere in one moment. If you need to keep something, do it yourself. I wish good luck to everyone who is waiting for the happy moment of completing the migration. I hope that it will come to you soon. Of course, this is not the way to treat users, we have encountered yet another confirmation that all these slogans of companies about caring for customers, improvements for our safety or our convenience are worth nothing, but in fact they simply allow companies to pump more money out of customers.

Thank you all for the detailed posts on this thread.

I was struck by this issue morning. One of my two accounts in my family has migrated while the other has not.

This thread was the most useful to understanding my issue. Sadly, I cannot wait MONTHS for the issue to "resolve itself" so I will be investigating alternate methods to share files.

I was really happy with my M365 family plan and the syncing across devices, but this experience has serious damaged my option of Microsoft. I hope the Microsoft customer service takes this to heart and make changes to warn users of such a migration and takes steps to ensure regression testing captures this type of fundamental failure in the future.

We will see how long it takes for my accounts to resolve, but if this issue persists, this is a fatal error in my opinion.

The 2 workarounds that were suggested by some members worked for me in the end, on 2 different PCs of the Family network.

Can't go back to link to the specific posts, but if you use the search words "add a network location" and "map network drive" you should be able to retrieve the 2 solutions.
One worked on one PC, and the other worked on the other.

GOOD LUCK and seriously, Microsoft you should at LEAST offer 1 year free membership to all your OneDrive users....