A Microsoft file hosting and synchronization service.
Hi, I'm Rodrigo and I will help you.
All the information you got is right, to change the location of the OneDrive folder, you must Unlink the account, set it up again and during the setup process, select the OneDrive folder location.
The Backup feature on OneDrive will always change the folder location to inside the OneDrive folder, so if you have the OneDrive path set as "D:\OneDrive", it will change the Documents folder to "D:\OneDrive\Documents."\
Unfortunately, it is not possible to change this.
If you don't want your Documents folder to be inside the OneDrive folder, you can disable the backup, you can set it on OneDrive Settings > Sync and Backup > Manage backup, turn off the folder option, it will restore the folder location but does not move the files, you need to manually move the files from the OneDrive folder.