There needs to be an option to select any folder on a user's system for backup and sync.

One major limitations that caused me to use Google Drive over OneDrive and all its useful features is it inability to sync to any other folder excepts its own. The way a user decides to organize their files and folders should be their choice. Currently, onedrive dictates how you will organize your PC if you chose to use it's autosave and sync functions.

The user is confined to the bounds of one ondrive folder and its subfolders. This often becomes an organizational nightmare and goes against the freedom that Windows Explorer intended.

Give the user the option!... One of your major competitors does

If a file is in the onedrive folder and you set it to read only, that property is overridden. You can change that file from onedrive web.

SUGGESTION
Shouldn't read only property in windows and protected document talk to each other? and have similar behaviours?
Protections should show somehow on both sides.
May be three states: open, protected, pure readonly

eg, if unprotecting ask if you want to work in a copy, or force to work in a copy.
Some kind of protection should be in place for other types of files. Because read only would be overridden as well, i suppose.

THOUGHTS
You say versions purpose is to protect files. But read only also protects. When your program starts saving hundreds of versions, you no longer know which is the good one. There should be a definitive lock similar to read only.

Protection, autosave, version is a very confusing set of features for people educated in classic file systems. Some old important features are missing. Some new features look not manageable in practice.

Fools always find a way to break a very "clever" system. Never think a system is fool proof

Many users need to keep sensitive documents off of someone else's controlled Cloud storage. There needds to be a option to turn One Drive OFF. I do not want my documents stored anywhere other than my own external hard drive. I don't require synching, Cloud storage or "back up copies" for 60 days in the cloud. I have used external HD's for 40 years which allow me total control of my materials, eliminates virus issues and allows positive back up not requiring internet connections. Plus I can create and work on documents off-line as well as access programs without being on-line.. Microsoft is liable if documents are lost in their storage system, anticipate lawsuits. One Drive renders my five Windows 10 machines useless because it does not meet simple security standards.

( OneDrive ) Its like this : I bought the last 16 PERSONAL COMPUTERS for " personal use " My personal TAX records, photos, papers, Law Enforcement files, ETC ) (PERSONAL papers ) I THINK because it has been proven time and time again that nothing is safe on a computer allowing your program to hijack all my files infringes on my Fourth Amendment rights. If You do not give me a way to stop this, or remove OneDrive, I'm going to seek help from congress and research a class action law suet to force you to get to **** out of my personal papers. The validity of the claim may be questionable but the anger of the many people that I have talked to is real. Big brother dose not need a civilian counterpart collecting personal information. And don't give me its safe BS it wouldn't take one of your employees 5 minutes to F up my computer.