OneDrive ignoring domain joined status and/or KFMBlockOptIn

Question

I have been re/directed here. Original thread opened here.

Today I started to get complaints by users that they are asked to backup their files on OneDrive. Those users are working on domain joined PCs. According to the documentation move of known folders to personal OneDrive accounts should be disabled by default.

Even after setting the policy and validating the KFMBlockOptIn value to be 2 (tried 1 as well) OneDrive is still offering moving of folders to OneDrive and despite the documentation claming the folders are moved back to local profile they remain on OneDrive once put there. Users are even still continuously bothered to turn on backup with no way of permanently disabling it.

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](https://filestore.community.support.microsoft.com/api/images/c420f24d-4cc3-4a33-9f02-a1cab90647be?upload=true&fud_access=wJJIheezUklbAN2ppeDns8cDNpYs3nCYjgitr%2bfFBh2dqlqMuW7np3F6Utp%2fKMltnRRYFtVjOMO5tpbpW9UyRAwvLeec5emAPixgq9ta07Dgnp2aq5eJbnfd%2fU3qhn54d%2faCG3HrQmOX9OSzXpd6%2f2tz%2fkuG97UKSCQzhOSyrDHLBmL7EbKHF9ariMCjvSJ32q1EzuEykgNAr%2fudp8hulL2GPV3BWlVrU20TRhWKmVzW6ZtlQAR2bdM4R3sVB%2bAvXlO9iaGOyCcBAzUBpZcxj6Kl6nFDFJwPNJnlsi3hKCdwU5DQ6CJztCcXk9OV74Nz0A5S3q9DKP6SjQXnQVkFF7rtogGIpPunULIcAo9RteOALo3Q%2b9icXzQUXNVcrbbxYLo48dsISyDRHHD2%2fu%2bGeQR3Upz%2f3HS%2fHzbLW95IHak%3d"filestore.community.support.microsoft.com")

My OneDrive did update to version 23.196.0919.0001 and keeps doing this even if manually deploying version 23.184.0903.0002 as advertised to be the latest version.

Does anyone see the same issue of OneDrive begging users to move known folders to OneDrive even on domain joined machines and/or even when the policy is set to disable this behavior? Is this an "intentional bug" introduced by Microsoft?