OneDrive: Shared folders are only available via internet shortcut

Exactly the same for me too. Google email as Microsoft account.

Opened an issue with Microsoft, no response. Might as well change to a different cloud provider.

It’s ridiculous Microsoft support either points you back to this thread or says

Shortcuts to shared folders Some OneDrive shared folders shortcuts located in your My Files may show up as .url internet shortcuts which open a webpage instead of a folder. We are aware of the issue and are working on resolving it, at which point the internet shortcuts will automatically convert back to a folder.

Dear Microsoft, This persistent bug is becoming increasingly frustrating. What’s causing the delay in resolving this issue? My Office 365 subscription is due for renewal soon, but without a functioning OneDrive, the software is practically unusable for me. Can you please provide an update on what steps are being taken to address this?

In my business we are having serious difficulties with this problem.

It’s so frustrating I understand you, I think a solution will never be here tho.

After more then one year…microsoft only “knows” about the issue.

So bad since where I live they even bumped up the yearly price of about 30€ witch is not nothing at all.

Have you tried to change the main email associated with the account who is sharing?

Or you have to create an entirely new one?

At the moment, even a newly created Outlook account can still encounter this issue. I've created dozens of new accounts (both Gmail and Outlook) and tested hundreds of sharing scenarios (old-to-old, new-to-old, Gmail-to-Outlook, deleting and reinstalling, using a local Windows user...). All of them still result in a URL in Explorer 😆😆. My only option now is to practice meditation and patiently wait for Microsoft to fix it.