OneDrive on macOS Tahoe 26.2: Files On-Demand broken, files cannot be opened or copied (Error -36)

Hello,

I am a paying Microsoft 365 subscriber and I use OneDrive as my main cloud storage across several computers. I currently store about 562 GB of my 1 TB plan there. On my Mac, OneDrive has been unusable for months and I would like this looked at properly rather than answered with a standard reset article.

Environment:

• Device: MacBook Pro 16-inch, 2021, Apple M1 Pro, 16 GB RAM
• macOS version: Tahoe 26.2
• OneDrive version: latest available (auto-updated). I cannot read the exact build number because the app does not launch far enough to show its About screen.
• Account type: Personal, Microsoft 365 subscription
• OneDrive usage: approx. 562 GB of 1 TB

Symptoms:

1. Files On-Demand does not hydrate files. Files show as online-only placeholders in Finder, and when I open or copy them, Finder fails with "The Finder can't complete the operation because some data in [folder] can't be read or written. (Error code -36)".
2. "Always keep on this device" does not work. Setting it on a folder produces the same failure instead of downloading the content.
3. The OneDrive icon is missing from the menu bar. Launching OneDrive from the Applications folder opens the OneDrive folder in Finder instead of starting the app.
4. When the client does start, it shows a "You must restart OneDrive to continue" prompt that does not resolve anything after restarting.

What I have already tried, without success:

• Restarting the Mac multiple times
• Uninstalling and reinstalling OneDrive
• Running the OneDrive reset command from inside the app package
• Setting folders to always keep on this device
• Checking that the OneDrive process is actually running in Activity Monitor

The only way I can access my own files right now is downloading them through the browser at onedrive.live.com. That is not what I pay for.

This is not an isolated case. There are multiple public threads describing the same behaviour on macOS Tahoe, on both Apple Support Communities and Microsoft Q&A, including the client quitting silently in the background, Finder hanging on OneDrive folders, and files failing to download. Several of them have no working answer.

What I am asking for:

1. Confirmation of whether this is a known issue with the OneDrive client on macOS Tahoe 26.x, and whether a fix is in progress.
2. A working procedure to fully remove the client, including any leftover containers and File Provider state, and reinstall it cleanly.
3. If there is no fix, tell me directly, so I can plan to move my working files off OneDrive.

I am happy to collect logs or diagnostics, or provide my device serial number, if you tell me exactly what you need.

Thank you,

Dmitriy Shanchenko