OneDrive – Shared folders can no longer sync locally since yesterday

As of yesterday, I've noticed that shared folders are back to normal on my Mac (no more URLs). So I think the migration took +/- 4 weeks for my OneDrive account.

As of 31st May my OneDrive has properly working local sync of Shared folder again 🥳
Below is what happened and what I needed to do to get things working again.

BUT note this will only work once Microsoft migrates both your linked OneDrive's to V2 (When you will have 'Restore your OneDrive' as bottom left menu option of https://onedrive.live.com/?v=managestorage for both accounts you want to locally sync)

1. After a month with local sync broken I noticed my Windows 11 OneDrive Sync client doing a big 'Processing .... changes' yesterday, but not seeming to actually be downloading or changing any of my files
2. I let that run all the way through and at the end it created a duplicate of URL based link to Shared folder (Orange circled), but not yet back to proper local sync. Previous URL based shared folder link still remained (Yellow circled)
   
3. Looking at OneDrive via web browser showed me those 2 links, with original still a special OneDrive URL link (Yellow circled), and duplicate as normal URL shortcut (Orange circled). Both worked to navigate to shared folder in web browser, but not yet locally in Windows
   
4. I then went and checked both my main and the shared OneDrive accounts via web > Top right Cog icon > Options
   https://answers-afd.microsoft.com/static/images/image-not-found.jpg
   which gets me to https://onedrive.live.com/?v=managestorage
5. Where I could see that BOTH OneDrives I wanted to link now (finally) had bottom left option showing as 'Restore your OneDrive' (indicative of being hosted on V2 OneDrive servers) 🎉
   
6. Once I'd confirmed that, then in web browser, I selected the OneDrive created URL link (previously yellow circled) and choose 'Remove'. Then I also deleted via web the duplicate URL shortcut (previously orange circled) and then waited for my Windows 11 OneDrive client to update and remove both from my local sync client
   
7. Out of an abundance of caution (not sure if this step is necessary) I then restarted my PC and waited until my Windows 11 OneDrive client was back up and happy that it had sync'd everything
8. Only then did I via web go into 'Shared' left icon (1), reselect the 'Personal Pics on HGoo' folder that I wanted to locally sync (2) and choose 'Add shortcut to My Files' option (3)
   
9. After that both Web and Windows 11 Sync client showed 'Personal Pics on HGoo' appearing higher up in previous alphabetical folder order and OneDrive after a short delay the OneDrive Sync client started to do a massive re-sync and download of all that shared folder's content (because I had set my OneDrive to sync all my OneDrive files locally, not just leave them On Demand)
   

Sorry for the long post, but I hope that step by step helps others, once they discover both the OneDrive's they want to Sync between have been migrated by Microsoft to V2 backend.

For reference both the OneDrives in question here are 1TB accounts on the same 365 Family plan.
One contains a bit over 700Gb, the other over 850Gb, of files. Mostly my family's 20 years worth of digital photography
My problem occurred early May when one of those two accounts got silently migrated to V2. It has taken the whole of May until the 2nd account got migrated, but I know others have been waiting much longer.

For anyone still stuck waiting I did previously post in this thread about a double account login workaround I was using in the meantime

Thanks everyone! I had kicked up a big stink with Microsoft and they kindly escalated my case and it was rectified in less than a week.

They also gave me a free 3 months subscription on my Microsoft 365 account.

Apparently it was a security flaw in One Drive that created this chaos.

https://www.csa.gov.sg/alerts-and-advisories/alerts/al-2025-051

This is a fantastic guide, thanks for your time posting all the steps. It's been about 4 months not working for me, at a critical time when I needed access to shared documents via Windows. I agree with others sentiment, Dropbox, Google and others do this seamlessly, and Microsoft seem to be nonchalant about impact on their users, many of whom are 'advanced' (less advanced wouldn't be sharing folders).

I had high hopes your instructions would work for me.

Alas, after following the instructions diligently my Windows laptop still shows the same problem.

Both users have the "Restore my onedrive" indicating they are both on v2 servers.

I've never had a duplicate link (orange circled) however, nor a lengthy "'Processing .... changes' " option though.

Does anyone know how to trigger this or any other way around? (it's been a couple of weeks since a post in this forum).

Mine wasn't working for months.

Suddenly last week it started working with no input from me.

So frustrating it took this long to migrate my (or my wife's, I'm not sure) account.