Move "my games folder" to local documents instead of one drive

But then all my other files from documents won't be syncing. Is there not a way to store the my games folder on the internal storage then?

I have an idea that you might like.

Create another user account on your PC. Go to the Windows 10 Settings > Accounts > Family and other users > Add someone else to this PC. When prompted just say you don't have this person's sign in or account information. You will be creating a local user account without a Microsoft account. Then reboot your computer and sign into the new account you just created. You can select the new account on the login screen.

Now you can use that new account for your games if you want. But you will have to install and play your games on that new account.

Is there a way I can change the Location of the 'My Games' folder to somewhere outside OneDrive; specifically, on the C drive?

You can't exclude a folder within the backed up Documents folder. I would suggest putting your folder at C:\Users\username\MyGames which is not located in OneDrive.

If I untick 'share this folder' it removes it from my PC, even with 'keep on this device' enabled for that folder.

Yes, that is correct. So you will have to remove the "My Games" folder from the backed up Documents folder unless you stop the backup of the Documents folder in the OneDrive settings.

But then all my other files from documents won't be syncing. Is there not a way to store the my games folder on the internal storage then?

You can't exclude a folder within the backed up Documents folder. I would suggest putting your folder at C:\Users\username\MyGames which is not located in OneDrive.

I tried moving the folder to that location. The thing is that, when starting the game, it doesn't recognize the data I moved locally and creates another folder on OneDrive.

In OneDrive settings you exclude that folder