Hi Jacob,
I would like to confirm, if the blue part is synced with OneDrive sync client while the red part is using the mapping network drive? Because you mentioned you use the mapping network drive feature in your last reply, I tried to move a mapped folder to under the OneDrive sync folder, it will show like this, just like it is a subfolder. So, to confirm that, you can try to drag the “Legal Copliance – Documents” folder down to another position to see the result. If this is OneDrive sync folder, you are not allowed to move it. If this is mapping network folder, you are allowed to move it.
Please confirm that so we can move forward to the next step.
Thanks,
Rena