Well, I guess that they found the right audience. I have no idea why anyone would stick with a Mac having lived through that. Either Apple users didn't have any data worth saving or they screwed over a lot of people. Same with their premature removal of the floppy drive. They did force people to throw away a lot of perfectly good equipment for no good reason. Their tiny market share did nothing to push the standard forward. Yes, Macs had USB, but so did everyone else. Apple was busy pushing their own alternative to USB, firewire, and failing miserably. USB didn't really take off until Apple made it mandatory and removed legacy serial/parallel/etc ports. That might be confusing if you expect to have a full copy of your data saved to your disk even when you're offline. But the move will also make those apps a bit less flexible - Microsoft says that the new version of Files On-Demand can't be disabled. The extensions should also reduce the likelihood that a buggy or compromised kernel extension can expose your data or damage your system. In addition to integrating better with the Finder (also explained by Microsoft here), using modern Apple extensions should reduce the number of obnoxious permission requests each app generates.
It explains that Microsoft will be using Apple's File Provider extensions for future OneDrive versions, that the new Files On-Demand feature will be on by default, and that Files On-Demand will be supported in macOS 12.1 and later.
Microsoft's documentation for OneDrive's Files On-Demand feature is more detailed. The page notifies users that Dropbox's online-only file functionality will break in macOS 12.3 and that a beta version of the Dropbox client with a fix will be released in March. Apple says that "both service providers have replacements for this functionality currently in beta." Both Microsoft and Dropbox started alerting users to this change before the macOS beta even dropped. Ars Technica reports: The extension means that files are available when you need them but don't take up space on your disk when you don't. If you're using either Dropbox or Microsoft OneDrive to sync files on a Mac, you'll want to pay attention to the release notes for today's macOS 12.3 beta: the update is deprecating a kernel extension used by both apps to download files on demand.
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