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M365 Changelog: (Updated) Updated Files On-Demand Settings on Windows

MC499439 – Updated April 4, 2023: We have updated the content below with new information and timing. Thank you for your patience.

We have an update to the OneDrive sync app advanced settings for Files On-Demand on Windows.

Previously, a toggle was shown to allow users to opt out of Files On-Demand. After this change, users who have Files On-Demand enabled will no longer see that toggle. Instead, users will see two buttons:

After this change, users who have Files On-Demand enabled will see two buttons:

Free up disk space: This saves space on this PC by setting all your files to online-only, including files currently set to “Always keep on this device”. The first time you open a file in the future, you’ll need to be online.
Download all files: This will us up to X MB of space on this PC and includes files currently set to “Free up Space” or online-only. Files download when you’re online and then you can use them offline.

Admins can still disable Files On-Demand, if necessary, by setting the Use OneDrive Files On-Demand policy to “dword:00000000”. If Files On-Demand is enabled by policy, the “Download all files” button in OneDrive Settings will be disabled.

This message is associated with Microsoft 365 Roadmap ID 101520

When this will happen:

We will begin rolling out to the Production ring in early April and expect to complete by mid-April.

How this will affect your organization:

This change only affects users who have Files On-Demand enabled. There is no change at this time for users that have the feature disabled from OneDrive settings or by admin policy.

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What you need to do to prepare:

No action is required at this time. If you have documentation that describes how to disable the Files On-Demand setting, you will need to update it.

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