A Microsoft file hosting and synchronization service.
This doesn't solve the problem.
The selected folder will have OneDrive folder, but it is only an alias.
Check the OneDrive Folder info. It says: Original: / Users/your name/Library/CloudStorage/OneDrive-Personal.
Many users want to have OneDrive on a large-capacity external drive so that all files are available locally and not on-demand. My Mac has 1TB internal storage. Since OneDrive cannot change the default folder to the intended/desired location I specify, it cannot change the path.
This is a significant problem for the people who are in creative areas of work or hobby. I am a landscape architect, and use many images and 3D models daily basis. I also have many Ableton files to be able to access while making music. For people like us, on-demand doesn't work.
In retrospect, I should have stayed with PC which has more flexible file management system than Mac. Or I should have larger internal storage when I purchased Mac M2 Studio. I thought I did full research, but I missed this one.