A Microsoft file hosting and synchronization service.
I regret to see this event unfold, but I have seen before how a problem is handled by Microsoft, such as this onea few years back about tags in OneDrive. It appeared that the ability to create tags for photos in OneDrive suddenly disappeared. Moderators chimed in as well as people relaying results from calling Microsoft that "they are aware of the issue," that "engineers were deployed," that "Microsoft understands the concern," and that "the problem would be soon resolved." It never happened. I recommended to people that for those where tags were important, to pick a date (I suggested the start of the next month from my comment) where if it was not resolved, to find another service or in-house solution. That day came and went, and no solution at the time was provided. I checked in 6mo later and still no solution.
Microsoft is a large company with vast resources and intelligent people. Professional development goes through a development environment, then testing and finally provisions for rollback. They would not deploy a change to the entire user population in one go. If they didn't follow due process, then you would wonder if you should rely on them in the future for your cloud storage.
This sort of thing is unlikely to happen by chance. Dropbox has been shared cloud files on the desktop without flaw, and I'm sure it is a simple thing that Microsoft can handle. I wonder if this is how they get people either to stop using the feature to free up their resources or to pay a premium without having to announce it. We just renewed our M365 subscription for a 38% increase (CPI here was 2.4% for 2024) and today received a notice telling us Skype calls and Publisher are being cancelled (so reduced value) and now no more inclusion of shared folders with File Explorer.
I would recommend you adopt the same approach that I recommended with the tags issue. Pick a date after which you will search for a new service and move your files. You could wait indefinitely, wasting time. The longer it goes, the more solid the demonstration that your files are in an unreliable place if they don't follow best practices. (It's a shared folder this time—what's next?) For some, this is not too critical, so they'll wait a couple months; others need this now and will pick the end of the month at most.
I have to now deal with a client who just signed up their business and asks me for help with secure file storage. What do I tell them?