A Microsoft file hosting and synchronization service.
I see the problem persists. I don't know if it's going to help but I want to share my findings.
We, 36 employees, are using the Office 365 in the same workplace. While some of shared folders (from specific people) can be explored on the computer, some others appear as URL. I made an Excel, listing some factors that might affect the situation. I checked the OS language, OneDrive Web Display Language, etc. of the users. The only difference that seems to be in correlation with this issue is the notification e-mail sent by OneDrive upon sharing a file with me. We are in Türkiye and the files of the owners whose notification e-mail is in English (eg., "coworker shared the folder "Folder" with you) have shortcuts as files in my computer (that can be explored locally) and the files of the owners whose notification e-mail is in Turkish (arkadaşınız sizinle "Dosya" klasörünü paylaştı) have URL shortcuts. This is the only consistent difference between coworkers who shared their files with me.
I don’t know the reason behind the language of e-mails. That's why i couldn't find a solution. I have checked the OneDrive web display language, Office Apps language, OS language, even the time/regional formats. None of them shows any type of consistency with the e-mail language.
I hope this adds a new perspective.