I got OneDrive to work but it wasn't easy, following an old article I found about how to reset OneDrive thoroughly:
- <path to OneDrive executable> /reset (you will see OneDrive icon vanish)
- In regedit, delete HKCU\Software\Microsoft\OneDrive, the whole key
- Find Appdata\local\microsoft\onedrive folder (ignore onedrive folder one level up), and delete entire Settings subfolder.
- In the start menu, find OneDrive and run it. It will prompt for your credentials and apparently initialize itself successfully. From then on it seems healthy for that user.
I also set up an identical Windows 10 multi-session with apps and FSLogix (latest template version), and OneDrive worked fine. So I think OneDrive has some bug with W11 multi-session, I hope Microsoft fixes it soon!
Above paths are from memory and might be slightly wrong but they are easy enough to find.