Trouble Sharing Files Between Users on Same Windows 11 Home PC When Files Are in OneDrive

Question

We have two users on on our Windows 11 Home Edition PC. Both users have Microsoft accounts with active access to OneDrive. We can share PC files between users when the files are shared outside of a OneDrive folder, such as in C:\Users\UserA\SharedDocuments. We do this by right-clicking, then using 'give access to' -> 'Specific people' and entering UserB's email address, and then changing the Permission Level to 'Read/Write'. Then UserB can log in to their account on the computer and edit the files in C:\Users\UserA\SharedDocuments.

However, if we follow the same procedure for files in a OneDrive folder such as *C:\Users\UserA\OneDrive\Documents\SharedOneDriveDocuments* then UserB can see the documents but cannot edit them. UserA has also shared the SharedOneDriveDocuments folder with UserB in OneDrive with edit permissions, and UserB can edit documents from their web browser when accessing the documents through OneDrive. We have been using Notepad .txt files for these experiments. UserA and UserB are also members of the same Family Group within account settings.

I've reviewed File sharing over a network in Windows (Including 'troubleshoot sharing files and folders')

The message that we get when UserB tries to save a file in C:\Users\UserA\OneDrive\Documents\SharedOneDriveDocuments is

And the permissions for the C:\Users\UserA\OneDrive\Documents\SharedOneDriveDocuments are:

(Note: Screen shots edited to anonomize personal info)

Answer 1

After a week with no suggestions here, I contacted Microsoft Technical Support. We had a thorough discussion of the issue. The conclusion was that this is a known issue that is currently being worked by the developers at Microsoft. Should this thread remain unlocked until there is a resolution, I will provide an additional comment when resolved. Our workaround for now will be to create a third account on the computer with a shared login and we will store the files we want to share in that third account, maintaining our individual accounts for our personal documents. Not ideal, but will work for now.