I am seeing this error across multiple computers and multiple users, some using Windows 10 Pro, some using 11 Pro (all are kept updated with the latest versions and this has been happening since Feb/Mar 2024). Users will get a certain number of Explorer.EXE error messages "This file does not have an app associated with it for performing this action." I usually get 2 of them, some coworkers will get 4 or 5, and the boss will get 10-12 at a time. 100% of the time, it occurs completely independent of any action taken by the user. It's not that they clicked on something and got the message- it just happens on it's own every couple of weeks or so. This is what my users have reported and has been true in my personal experience.
There does not seem to be any apparent cause. The afflicted users have different job roles. Other users with similar setups and usage have NEVER seen this issue. Some see it once a week, some see it once a month. We use SharePoint and OneDrive to share and store files.
In Event Viewer, the "Session 'Cloud Files Diagnostic Event Listener' failed to start with the following error: 0xC0000022" is always present at the time of Explorer error messages along with "Session 'Microsoft.Windows.Remediation" failed to start with the following error: 0xC0000035".


As of the time of this writing, there is no longer a selection switch in OneDrive to turn off Files On-Demand- just the option to free up disk space.

I have tried the following across several of the afflicted machines without a total resolution:
-sfc /scannow (found and fixed errors)
-DISM commands
-enabling DirectPlay in the Windows Legacy Components
-Looked in Reliability History in the Control Panel (found nothing)
-Uninstalled all Office apps (except Teams) including OneDrive, reinstalled Microsoft 365 Apps for Business (which reinstalls OneDrive)
For clarity (because I have seen 3 different versions), this is version of OneDrive in question:
