OneDrive File Issues

How to Fix Documents Moved to OneDrive After Microsoft 365 Update

Maira Mehtab Sep 22, 2026 868 views

Question details

The Windows Documents folder automatically redirected to OneDrive after a Microsoft 365 update, causing local files to sync to the cloud unexpectedly.

Product: Microsoft 365 / OneDrive
Device & OS: Windows
Scenario: Following a recent Microsoft 365 or Windows update, the default user Documents folder pathway redirects to the OneDrive cloud folder.
Observed behavior: Files in the local Documents folder are moved to C:\Users\username\OneDrive\Documents. Some files may appear as cloud-only Files On-Demand placeholders instead of remaining physically on the local hard drive.

Before you start

Ensure your PC is connected to the internet and wait for any active OneDrive sync tasks to finish completely to avoid data loss before changing backup settings.

Solution 1Recommended

Disable OneDrive Folder Backup and Restore Files Locally

Stop OneDrive from automatically backing up your Windows folders and safely move your files back to the default local directory.

OneDrive is designed as a synchronization service, not a traditional isolated backup. During a Microsoft 365 update, the 'Folder Backup' feature is sometimes enabled by default, which overrides your PC's default Documents path to point directly to the OneDrive directory.

You can manually turn off this automated backup and restore your original local folder structure without losing any files.

Open OneDrive Settings

Click the OneDrive cloud icon located in your Windows taskbar notification area (system tray). Click the gear icon in the top right corner of the panel and select 'Settings'.

Access Backup Settings

In the Settings window, navigate to the 'Sync and backup' tab on the left menu, then click the 'Manage backup' button.

Stop Documents Backup

Locate the 'Documents' folder in the list of backed-up folders. Toggle the switch off to stop backing up this folder to OneDrive. Confirm your choice if a prompt appears.

Move Files Back Locally

Open File Explorer. Navigate to C:\Users\username\OneDrive\Documents. Select all the files you wish to keep locally, cut them, and paste them into your default local folder at C:\Users\username\Documents.

Synchronization Check: Always verify that your files are fully downloaded (not showing a cloud icon placeholder) before attempting to cut and paste them to the local folder.

Solution 2

Adjust Files On-Demand to Keep Files Locally Available

If you want to continue using OneDrive for backups but prefer your files to remain physically on your hard drive rather than as cloud placeholders.

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1. Download WPS Office: Visit the official WPS Office website and download the free installation package for Windows.
2. Install the Software: Run the installer. The setup takes only a few minutes and will not force you into unexpected cloud sync settings.
3. Set Default Save Location: Go to WPS Settings and set your preferred local drive folder as the default save path, ensuring complete manual control over your files.

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Frequently Asked Questions

Why are my files showing a cloud icon next to them in File Explorer?

The cloud icon indicates the file is stored online via OneDrive's Files On-Demand feature. It is a placeholder that does not take up physical space on your hard drive until you double-click to open and download it.

Will I lose my files if I turn off OneDrive backup?

No, turning off the backup will not delete your files. It simply stops new files in that folder from syncing to the cloud. However, your existing files will remain in the OneDrive folder pathway, and you will need to manually move them back to your local Documents folder.

Can I completely uninstall OneDrive from Windows to stop this?

Yes. You can unlink your account in OneDrive settings, then uninstall the OneDrive app entirely via Windows Settings > Apps. Note that if you are using a workplace or school computer, organization policies might restrict you from uninstalling it.

What is the difference between OneDrive backup and synchronization?

OneDrive is primarily a synchronization service, which means it mirrors your files across devices; if you delete a file locally, it is also deleted in the cloud. A traditional backup keeps historical copies safely separated from your active workspace to protect against accidental deletion.

Document & File Issues