I just got this workaround and it works as a temp solution until Microsoft fix the issue. I Hope you find i useful.
Hi marky,
Thanks for visiting Microsoft Community.
The issue of OneDrive shared folders turning into shortcuts in File Explorer is a known problem that remains unresolved. However, based on information gathered from the community, there is a temporary workaround for Windows:
First, log in to onedrive.live.com via a web browser. In the root directory of the folder shared with you, select any Office document, click the three dots - Open - Open in app.
In the opened Office application, click File - Home. You can see the shared file you just opened under Recent. Right-click it and choose "Copy path to clipboard."
Open Windows Explorer, find "This PC" on the left, right-click and select "Add a network location." In the "Add Network Location Wizard," click Next, then click "Choose a custom network location."
Paste the copied file path into the input box, and delete the file name portion (for example, if the path you copied is https://d.docs.live.net/xxx/xxx/ABC.xlsx, you should delete ABC.xlsx and keep the preceding part).
Then, enter your OneDrive account username and password in the pop-up window, set a name for your folder, and click Next to complete the creation.
At this point, you can directly access your shared folder in "This PC" in File Explorer. There may be some delay, but this can serve as a temporary workaround while waiting for the issue to be fixed.
Hope this helps.
Best Regards,
Jonathan Z - MSFT | Microsoft Community Support Specialist