Same issue happened to me today, 28.02.2025. I noticed the problem when i tried to save a word file as pdf file to the same OneDrive folder where i opened it. Word gave "path does not exist" error when i pressed save button. Interestingly, i can reach folder with windows explorer and see all of the documents saved there and open any file. But when i try to save them to there again, word gave "path not found" error. I restarted my computer and tried again. Folder was reachable, files were working but i could not save there. I also noticed that Word was opening unusually slow when i opened word documents from that folder.
Therefore, i checked OneDrive app. My OneDrive (version 25.015.0126.0002) was stuck at processing around 10.000 changes. It was not doing anything. We did change only 5 or 10 documents recently.
So, I reset OneDrive. It gave me "We're resetting. Go ahead and keep working on your files...." message and started to process more than 50.000 changes. But it was not stuck this time. it nearly took half an hour to finish.
When One Drive finished processing changes, it gave me another error message as " we cannot merge changes in two folders, one folder is renamed as Design Docs-DESKTOP97RAF". Hundreds of files were lost in this new folder created by OneDrive. Original Design Docs folder is changed to internet shortcut???. I can no longer reach my shared folder from my computer. My shared folder can only be accessed from Web. I deleted this web shortcut. Afterwards, i tried to add shortcut from OneDrive web to same location. It only adds internet shortcut. I cannot work from my computer anymore.
What are you doing guys at there?