Hello Simon Neild,
The current official stance from Microsoft is that the OneDrive sync app is fully supported on Windows Server 2025. The technical difficulties referenced in earlier Insider previews, such as the one mentioned in the Tech Community article from early 2024, have been addressed. For production environments using Remote Desktop Services or Azure Virtual Desktop on Server 2025, you should utilize the per-machine installation of the OneDrive sync app rather than the standard per-user install. This ensures that the binary is located in the Program Files directory and provides the necessary stability for multi-session environments.
To ensure optimal performance and functionality, such as Files On-Demand, you must verify that the Windows search service is enabled and that you are using a supported file system like NTFS. Furthermore, for an RDS farm, it's a best practice to use FSLogix Profile Containers to manage user profiles, as this provides the most seamless experience for OneDrive data persistence across different session hosts. You should also ensure that you're running the latest version of the OneDrive sync app from the Production or Deferred ring to maintain compatibility with the updated kernel and storage stack of Server 2025.
I hope you've found something useful here. If it helps you get more insight into the issue, it's appreciated to accept the answer. Should you have more questions, feel free to leave a message. Have a nice day!
VP