I submitted a support request via the mobile OneDrive app detailing the issue and pointing at a few threads, this one included. I received this reply after a two days:
"Thank you for contacting OneDrive Support Team. Hope you are doing well!
We understand that you have been waiting patiently for a response from us, and we appreciate your patience. We regret to inform you that we are currently experiencing a backlog due to unavoidable circumstances.
I understand you are facing issue with the shortcut to shared folder working as a link. I would like to inform you that our engineering team is aware of the issue and is working to fix the issue as soon as possible. As a workaround, you can continue to click on the folder and access the shared files/folders within the web browser.
Me and the team understand this can be inconvenient and hence, I would like to inform you that the fix for the issue you are facing will be rolled with coming updates, the OneDrive application installed on your device has the ability to auto-update. Once the engineering team from our backend releases the new OTA update, the OneDrive will get updated automatically and hopefully, the issue will get fixed.
We understand how inconvenient it can be. Rest assured; the engineering team is working to fix the issue as soon as possible, as many of our beloved customer like you have reported the issue with sharing folders working as URL.
Note: Your feedback is important to us. After this interaction you will receive a separate closure email with an opportunity to tell us about your experience.
We are archiving the case for now, however if you have any other queries related to OneDrive, please reply to this email, we would be happy to help!
I hope you would understand our limitations here."
How generic can you get?