OneDrive shared folder is not saving on computer; only saves as internet shortcut

Question

I have the same problem as was raised by Goat_52 on 23 June last year, where a reply said it was only a temporary problem that Microsoft was working on.

For a long time, I have had a shared folder with another family member, to which we have both been able to save files locally, and each of us then can access or edit them locally. The folder was created and shared by me, and I have given the other family member shared edit access. We are both using a Microsoft 365 family subscription running under Windows 11.

Yesterday, all the files saved locally in some (but only some) of the subfolders on the other family member's computerr disappeared, so the folders showed as empty, even though the files remained in the cloud and remained locally on my computer. As well, any new files placed in one of those subfolders on the other family member's computer no longer replicated.

To try to fix this, we unlinked the other family member's OneDrive account on their laptop, and then relinked it, specifying a different folder to be the local OneDrive folder. Everything else other than the shared folder replicated locally, but the shared folder appeared looking as if it were a folder, but in fact was simply a link to the OneDrive account in the cloud.

This makes the shared folder virtually useless for the other family member, because they can't open any files it holds in apps on their desktop, nor can they save any new files to the shared folder on their computer.

Can anyone provide a solution so this shared folder will replicate locally again?