Here is what I’ve found about this issue and what I’ve done to get past this issue for me and my family.
I need to first give credit to AndyWarner1 for pointing me in this direction. AndyWarner1’s post below clued me in to what is going on first:
“We have MS 365 with a family group. All of the people who have the same "version" of the online OneDrive (see below) can properly share folders. All folder sharing between two different versions of the online OneDrive result in shared folders being url links.
I saw another poster ask about the same version of the online OneDrive. I never realized there could be different online version of OneDrive. From what have seen, the way to tell the different versions is: 1. Log onto the web version of OneDrive.
2. Click the gear icon in the upper right.
3. click the "options".
4a. If your last option listed on the right of the window says "Search" then you have one version of OneDrive online.
4b. If your last option listed on the right of the window says "Restore your OneDrive" then you have another version of the online OneDrive.”
I found this is the root of the issue is for me and my family. Two of us are on the "Search" OneDrive online version as the bottom of the options page, and 3 of us are on "Restore your OneDrive" version of OneDrive online. If we share between different online versions of OneDrive, it doesn't matter what version of the OneDrive client we are running on windows or Mac, we have the url issue instead of the linked folder. As soon as we share across the same online version of OneDrive, there is no longer an issue.
I tried several things to try to force the online version to update, but no joy (including upgrading a sub account to paid).
To resolve:
I created new OneDrive accounts with emails not used before with OneDrive for those accounts on the older “Restore your OneDrive” version. All the newly created accounts are on the “Search” version. I then moved files from the old “Restore your OneDrive” online version to the new accounts. I then reshared the files between accounts and added the shared folders as a shortcut to My files on the accounts and all are working as they used to work.
I choose to go through this work as it appears Microsoft has committed to the new version as all new accounts are on it and I don’t trust their speed of roll outs. Hope this is helpful for those in the same situation.