OneDrive Folder Sharing Issue

Previously, I have been able to share a OneDrive folder with another user, who can then see and use the folder as a synced and shared folder in their File Explorer.

Recently, however, I tried to share a folder and it showed up on the other user’s machine as an internet url which directed them to OneDrive on the web, rather than as a folder in File Explorer.

Anyone else come across this and is there a way to solve the issue?

MS seems aware of the problem, as a search for the issue turned up the following on a MS support page:

Issue

Some OneDrive shared folders shortcuts located in your My Files folder may show up as .url internet shortcuts instead of actual folders.

If you try to open the folder shortcut, it opens as a webpage (and you may be asked to sign in) instead of a folder.

Status

We are aware of the issue and are working on resolving it. The .url internet shortcuts will automatically convert back to a folder when the issue is resolved. 

You can still access the shared folder content, but it will be via OneDrive.com