Why is default OneDrive settings "Always keep on this device" enabled for some users whole OneDrive folder?

Question

Why is default OneDrive settings "Always keep on this device" enabled for some users whole OneDrive folder?

Fia Ramberg 20

Some users has the default OneDrive settins for "Always keep on this device" turned on. This setting is on top lever OneDrive folder. For some users the choice doesn't even show. Why doesn't it show for all users and can I set it to default disabled for all users?

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Answer accepted by question author

Ron Barker 2,190

Hi Fia, re: "Some users has the default OneDrive settings for "Always keep on this device" turned on." I am not aware of this setting and to be honest unlikely. This is completely different to "Files On-Demand" In any event the best advice I can give it to turn off 'Always keep o this device' by right clicking on the folders/files and chose>Free up space. Sorry I cannot be of more help. If you could post an image of the settings it would put my mind to rest. Please come back for any further clarification or assistance.

Fia Ramberg 20 Reputation points

2025-07-15T07:27:58.7733333+00:00

Hi Ron, thank you for your answer. Yes I have toggled the option to off but still confused how this only show for some users and why some users have it on the entire OneDrive by default as this cause download also when you use the Add shortcut to OneDrive funktion from SharePoint library. See attached the option, in this case I have turned it off.
Ron Barker 2,190 Reputation points

2025-07-19T08:29:50.2766667+00:00

Hi Fia, what you are describing (as I understand it) is a complete contradiction of how OneDrive should work. The whole idea of OneDrive is to be able to have All your files on OneDrive online, but to be able to open them on your computer (Files on Demand). Or for you to be able to download all your files or some of them and to keep them there if you wish. See, What do the OneDrive icons mean?

Have a look at this video: https://www.youtube.com/watch?v=kc4JvqGEM-M
Ron Barker 2,190 Reputation points

2025-07-19T08:40:07.3966667+00:00

PS: SharePoint is something beyond my experience. What I do know is that it does not always work as it should. There have been numerous complaints about it, mostly to do with shortcuts that do not work as they should. Also, OneDrive needs to be working to be able to share files.
Ron Barker 2,190 Reputation points

2025-07-19T13:50:35.35+00:00

Hi Fia, Have a look at this thread re SharePoint: https://learn.microsoft.com/en-gb/answers/questions/4374088/how-to-see-onedrive-shared-folders-in-file-explore

1 additional answer

Your answer

Fia Ramberg 20 Reputation points

2025-07-15T07:27:58.7733333+00:00

Hi Ron, thank you for your answer. Yes I have toggled the option to off but still confused how this only show for some users and why some users have it on the entire OneDrive by default as this cause download also when you use the Add shortcut to OneDrive funktion from SharePoint library. See attached the option, in this case I have turned it off.
Ron Barker 2,190 Reputation points

2025-07-19T08:29:50.2766667+00:00

Hi Fia, what you are describing (as I understand it) is a complete contradiction of how OneDrive should work. The whole idea of OneDrive is to be able to have All your files on OneDrive online, but to be able to open them on your computer (Files on Demand). Or for you to be able to download all your files or some of them and to keep them there if you wish. See, What do the OneDrive icons mean?

Have a look at this video: https://www.youtube.com/watch?v=kc4JvqGEM-M
Ron Barker 2,190 Reputation points

2025-07-19T08:40:07.3966667+00:00

PS: SharePoint is something beyond my experience. What I do know is that it does not always work as it should. There have been numerous complaints about it, mostly to do with shortcuts that do not work as they should. Also, OneDrive needs to be working to be able to share files.
Ron Barker 2,190 Reputation points

2025-07-19T13:50:35.35+00:00

Hi Fia, Have a look at this thread re SharePoint: https://learn.microsoft.com/en-gb/answers/questions/4374088/how-to-see-onedrive-shared-folders-in-file-explore

Answer 1

Hi Fia Ramberg,

Welcome to the Microsoft Q&A Community.

Starting with OneDrive sync client version 23.066 and above, Microsoft enabled Files On-Demand by default for all users. When Files On-Demand is active, OneDrive provides two key options under Advanced Settings:

Free up disk space: Keeps files online-only (default behavior)
Download all files: Equivalent to “Always keep on this device” for the entire folder (not enabled automatically)

For reference: Save disk space with OneDrive Files On-Demand for Windows - Microsoft Support

Why Doesn’t the Option Show for All Users?

1.Sync Client Version

Only versions 23.066 or newer show both “Free up disk space” and “Download all files” buttons.

Older versions may not display these options and may default to syncing all files locally.

2.Files On-Demand Disabled via Policy

If Files On-Demand is disabled via Group Policy (GPO) or Intune, users won’t see either option.
Registry key to check: HKLM\SOFTWARE\Policies\Microsoft\OneDrive\FilesOnDemandEnabled
- 1 = Enabled (shows both buttons)
- 0 = Disabled (downloads all files, hides buttons)

To disable “Always keep on this device” and enforce online-only files, you can try to Use Group Policy:

Open Group Policy Management on your Domain Controller.

Create or edit a Group Policy Object (GPO) that is linked to the Organizational Unit (OU) containing the target computers.

Navigate to: Computer Configuration → Policies → Administrative Templates → OneDrive

Open the setting “Use OneDrive Files On-Demand”

Set it to Disabled, then click OK

On client machines, update the policy by running: gpupdate /force.

Once this policy is applied, the following registry key will be set:

HKLM\SOFTWARE\Policies\Microsoft\OneDrive "FilesOnDemandEnabled" = dword:00000000

After applying the policy, the OneDrive sync client will restart, disable Files On-Demand, and begin storing all files locally. The options “Free up disk space” and “Download all files” will be hidden from the OneDrive interface.

Note: Disabling Files On-Demand means all OneDrive files will immediately consume local disk space. Ensure your storage infrastructure can support this change.

For detailed guidance, refer to Microsoft’s official documentation:

IT Admins - Use OneDrive policies to control sync settings - SharePoint in Microsoft 365 | Microsoft Learn

Please let me know if there are any updates. I'm happy to assist further whenever needed.

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