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The Files On-Demand feature is designed to allow users to access files in the cloud without having to download them and use storage space on their Mac. Worsening matters, in tandem with the new macOS extensions integration, Microsoft has also made Files On-Demand the default behavior of its OneDrive client.

Microsoft says this new technology stack should make the feature "much better integrated with the operating system compared to the first version." Judging by feedback though, that has not been the experience of many users, with slowdowns and bugs variously reported. In a change coming with macOS 12.3, currently still in beta, Apple is deprecating the kernel extensions originally used by OneDrive's syncing features, so the Mac client is now using Apple's File Provider extensions instead.

Changes to the way OneDrive syncs files and folders on Mac has caused upset among users of the cloud storage service, following Microsoft's rollout last month of a new "Files On-Demand Experience" for Macs running macOS 12.1 and later.