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I did supply several feedback reports to apple, and the last 2 beta releases has fixed the issue on my side. I do backup OneDrive folders, and no longer receive the alert described...
 
I'm on latest beta 12 and still no luck with OneDrive folders. At the very end of backup error is presented again.
 
I'm on latest beta 12 and still no luck with OneDrive folders. At the very end of backup error is presented again.
Other than the usual disable, re-enable and start fresh, which are basically the only basic options easily open to us .... ? That is all I did.
 
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