I am experiencing the same issue. Shared folders in OneDrive are only appearing as internet shortcuts instead of actual folders in File Explorer. I have tried removing and re-adding the shared folder, reinstalling OneDrive, but the problem persists.
Has anyone found a workaround or any official response from Microsoft regarding this?
UPDATE:
I have encountered a problem with OneDrive shared folder synchronization related to the type of email used to create the Microsoft account. If the owner of the shared folder is using a Microsoft account created with a Gmail email address, the shared folder appears as an internet shortcut instead of a fully synced folder in File Explorer for the recipients. However, if the owner of the folder is using a Microsoft account created with an Outlook.com email address, the issue does not occur, and shared folders sync correctly as expected.
This seems to be a significant inconsistency in how OneDrive handles shared folder synchronization based on the owner’s account type. Microsoft should look into this issue and provide a solution to ensure consistent behavior across all Microsoft accounts.