I think he meant 25.020.0202.0001 which I agree is an insider preview but for some reason I got it on one of my machines eventhough I have the insider tab turned off.
I started suffering from the issue 4 days ago and it happened out of the blue. Thought I had done something dumb and deleted one of my family members entire shared folder directory as all their files were in my recycle bin!! Did all the normal things an experienced techy would do to try and fix incl. reinstalling, setting up a new share, checking permissions, etc, and still have the URL link now instead of a local folder. So frustrating and glad I came across this thread.
On an aside I am now convinced this is a server side issue (as mentioned by others) and it is linked to what the server hosting state is of an individuals OneDrive account. No clue whether they are mnigrating accounts or just breaking certain ones. It doesn't seem to be linked to the client version of the app you are running but I'm not 100% sure.
2 of my 5 accounts that have shared folders happily work together as before and they DO NOT have the Search option under OneDrive Options on the OneDrive website. The other 3 accounts do have the Search option listed (see picture below) and they also have shared folders happily working together in the old way. However any existing shares used between the two sets of users got converted to URL links and all copies of files were then deleted from people the files were shared with.

On a different note I also noticed the blue button on the onedrive website has 3 different incarnations but I can confirm that it is unrelated to identifying if you have a problem account and the only way of telling is the Search item in the Options menu mentioned above.
However here is a list of blue button version I have across by 5 accounts which is bizarre to say the least.

"+ Create or upload" on 3 of my accounts
"+ New & Upload" on 1 of my accounts
"+ Add New" on 1 of my accounts