Exactly... the folders are relocated to /Users/<username>/Library/CloudStorage/I did notice that my OneDrive folder was not searchable (as in, got no results), but I thought it was a synch issue. Are you saying they've changed something that makes it un-indexable?
Edit: Having looked at the OneDrive folder in my user folder, I can see that it is now an alias, not a folder. When I go to show original, I get "OneDrive", which has no path or point of origin. It can't be reindexed in Spotlight, and it is unsearchable.
This... is a problem! All of my work files are in there, and I need to search them.
Executing mdutil against that location just throws "Error: unknown indexing state."
I think one of two things are happening here: 1) either Microsoft didn't use Apple File Provider API properly (like maybe there's a flag to allow for this to be searchable); 2) Or a MacOS bug is causing this.
My next steps: 1) Update to 12.1 and rebuild the index; 2) Install in a new virtual machine and check if the behavior's the same and go from there.
Will report back as I have more info.