There’s been a lot of confusion about how OneDrive Files On-Demand works. So Microsoft dropped me a note to explain how to get it up and running.
The issue is that users are upgrading to the Fall Creators Update and not seeing all of their OneDrive files in File Explorer. For example, when I open my OneDrive view in File Explorer, I see only the folder(s) I’m syncing to the PC, not all folders and files.
To fix this, right-click OneDrive in the system tray and choose Settings. In the Microsoft OneDrive window that opens, navigate to the Settings pane.
If you see that “Files On-Demand” option at the bottom, make sure it’s selected. If you don’t see this option, you need to download the latest version of the OneDrive desktop app here.
Open OneDrive settings again after installing if needed and select that option as noted above. Then, navigate to the Account tab.
Click the Choose folders button. The Choose Folders window appears.
Here, choose “Make all files available” or whatever folders you wish. Doing so will not download the files and folders, it will just make them visible in File Explorer.
Which you can see for yourself after clicking OK twice. Well, and waiting a bit: It will take a little while for the changes (not the files, the changes) to sync.