Instead of downloading OneDrive is an ancient version online, it is best to download the latest version of Office and let it install the latest version of OneDrive for the license you have because 9 months ago, Microsoft split OneDrive into two versions: The OneDrive for home and personal use and the OneDrive SharePoint for business use you cannot have a usual download of a folder between the two different versions. But once you have installed OneDrive again and it is working on both machines, the folder not sharing correctly needs all of its permissions removed from the drive and then removed from OneDrive. Then, you want to go into the web version of the drive and create a folder with unrestricted rights to share with the other person. I do recommend rebooting your machine at this point the receiving computer you will click only one time to download the folder from the web version of OneDrive will not show up immediately; reboot the computer in this folder should now be downloaded on the other computer that you can see from Windows Explorer on the machine sharing the data all the data that was inside the folder can now be placed in the new folder on the one drive from Windows Explorer do not overwrite the file with the original root folder or it will make it act up again after you get everything out of it I recommend deleting it permanently
There was a version of OneDrive in the office that messed this up currently on both versions if you are fully patched up on Windows 10 or 11 and have checked inside the application under account, hit the update button, and have the latest version, you should not have any more issues if you follow these steps I've done this thousands of times and it has worked every time.
The machines I've looked at that this is not worked on is usually something is not up to date or the file is moved out of the OneDrive before permissions were removed. Our move to another location in OneDrive which prevents it from being able to create a fresh folder I create a folder on The Root Drive of C and call it old OneDrive and this is where I move everything when I'm working on it depending on how many times people have tried this you may need to clean out the multiple tries that are in the trash can in the OneDrive in the online version