1 voteJustin Warwick commented
I did not have your exact symptoms, but I did have some other trouble with working copy not being recognized as such when checkout was within a onedrive sync folder (from SPO). Again not sure if related or not, but there was this other feedback issue raised:
voting was closed before I could add a vote.
28 votesJustin Warwick commented
Just discovered the same problem (in June 2019). I have not attempted to turn off sync-on-demand on the client though. I did however attempt the "always keep on this device" option, to no avail.
In the end we just decided to allow the SVN repository to be the "real true master" copy, and then just periodically checkout or re-checkout down to the syncing onedrive path.