Hi Morten,
The versioning settings should not cause such issues.
For autosave feature, we suggest you enable it. As this supports co-authoring.
To narrow down the issue you have, please provide the information below:
1. To check if the issue is caused by OneDrive sync, please let your colleague right click the OneDrive desktop icon>settings>Pause syncing. Then check if the issue persists. You can resume syncing later.
· If the issue persists after you pause syncing, please provide the information below for our more investigation:
1. Does the issue happen to all the documents in this library? If so, please create a new document library to see the result. If the issue only happens to a specific document, please copy and paste contents to a new document to see the result.
· If the issue doesn’t happen any more after you pause syncing, this issue may be caused by the OneDrive sync client. Please follow the steps 1 by 1 to see if the issue can be fixed:
1. Right click the OneDrive sync icon>Settings>Office>sync conflicts to check if you select “Always keep both copies (Rename the copy on this computer)”, change to choose “let me choose to merge changes or keep both copies” to see the result.
2. Follow the steps in this reference to reset OneDrive.
Thanks,
Rena