Worsening matters, in tandem with the new macOS extensions integration, Microsoft has also made Files On-Demand the default behavior of its OneDrive client.
That part specifically isn't "worsening" anything. It's been like this for ages on Windows. THANK GOD. I'd be really angry if the default behavior would be to download 700 GB of cr@p every time I log into a new PC.
Files on demand is a godsend (it's really annoying that no Linux client supports this feature, not even Insync), but removing the option indeed hurts.