Microsoft is updating the OneDrive sync app advanced setting for Files On-Demand on Windows. This update will only affect users who have Files On-Demand enabled.
A toggle previously allowed users to opt out of Files On-Demand. With this update, users will no longer see the toggle, and will instead see two buttons: ‘download files as you open them’ and ‘download files now’.
Download files as you open them: This is the default and recommended behavior. Files are downloaded to the device if a user opens them or chooses the option to “always keep on this device” from the context menu in File Explorer. New files from the cloud are online-only by default, not taking up disk space. Files created on the device are available offline by default.
Download all files now: This setting is equivalent to choosing the option to “Always keep on this device” from the context menu in File Explorer for the entire OneDrive folder. Selecting this option causes all files from the cloud to be downloaded, taking up disk space on the device. The behavior of this setting is equivalent to the legacy option of turning off Files On-Demand mode, with some improvements like updated icons.