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

Solution with resharing may work for sharepoint/corporate version. For personal version it does not work :(

My same problem started in 22/2. I checked that I had the old version. Last night I received an email that many files were deleted. I checked onedrive online and saw that I was automatically in the new version. After that the admin stopped the sharing to me and then he shared the folders again. Everything works now! Before sharing i also installed onedrive again in my pc but I'm not sure if it was necessary.

Everyone who paid M$ subscription by card should use chargeback to get money back from Microsoft - https://en.wikipedia.org/wiki/Chargeback

When accountant department of M$ will be flooded by thousand of requests from banks maybe they force developers to fix this....

I share the same opinion. I have a team where we use about five computers. The first time this issue occurred was a year ago when the problem initially emerged.

Now, in this second wave, and we are facing it again.

I was able to fix four devices simply by changing the passwords, creating new folders and re-sharing them. But whats happend and what’s really strange - the problem came in second wawe on February 21, 2025. At first, one PC had empty folders, but the files still opened normally on the device. Then, by February 23, the issue had spread to all the devices I shared data with as an admin. One computer had empty folders, but files could still be accessed locally. Two computers had empty folders where the files would only open online. I was able to fix one of those two by resharing the data and creating a new folder, but the last one just wont work.

On that last device, I tried everything—uninstalled OneDrive, factory reset the computer, and even created a brand-new Microsoft account —but nothing changed. Out of all five devices, only this one still refuses and keeps creating internet link files instead of actual files. All runs on MS11.

This is extremely disappointing from Microsoft, especially considering it's a paid service. Their responses always claim they are working on the issue, but 99% of the replies are generic or AI-generated summaries of users' complaints, ending with the usual phrase that they are "working on it."

The "bug" affects only certain accounts/devices. Why? I don't know.

At this point, I am exploring Google Drive as an alternative and testing it because I am frustrated with this situation. I also find it unacceptable that I keep losing valuable work. Even after verifying backups on external drives, many files turn out to be incomplete, despite the folders being marked as "Always keep on this computer."

Microsoft is pushing me to find another provider. If a company cannot properly support its customers and resolve a global issue after nearly a year, then they are simply not reliable.