OneDrive Backup just got a massive change for the better - how it works now

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ZDNET's Key Takeaways

Microsoft automatically turns on OneDrive Backup in new Windows 11 installations.
Your files aren't stolen -- they've just been moved to a new folder and synced to the cloud.
A recent, undocumented change lets you turn off OneDrive Backup and move files back to your local folders.

Microsoft is getting more aggressive about tying its flagship productivity products to its cloud services.

In the most recent release of Windows 11, version 25H2, the OneDrive Backup feature is turned on automatically when you sign in with a Microsoft account on a new PC; as a result, some of the most common data folders in your user profile -- Documents, Pictures, and Desktop -- are moved out of their normal location and into OneDrive. The local copies aren't deleted from your PC, but it's easy to lose track of them if you don't know how the OneDrive integration works.

The result? Angry complaints like this recent one from BoingBoing.net: Everyone hates OneDrive, Microsoft's cloud app that steals then deletes all your files.

Ouch.

Also: How to remove Copilot AI from Windows 11 today

I've just spent an entire day installing, uninstalling, and resetting Windows 11 on an assortment of test machines so that I could understand what's going on. And I have some good news! Microsoft has been tweaking the way it implements this feature, almost certainly in response to the confusion its customers have been experiencing (and I've been documenting) for ages.

Previously, if you turned off OneDrive Backup, you had to find your orphaned files and manually move them back to the folders in your local profile. Thanks to the recent change, turning off OneDrive Backup on your PC now includes the option to automatically move those files back to where they should be. Of course, Microsoft hasn't bothered to inform its customers of these changes.

I think I've got everything figured out, but I also understand why so many innocent Microsoft customers are confused and angry over what happened to their files. And I have a massive headache.

How OneDrive Backup works now

If you add an account to an existing installation of Windows 11, Microsoft's setup procedure (also known as the Out of Box Experience, or OOBE) includes an option labeled "Only save files to this PC." It's a small link, and it's easy to miss if you click impatiently through those setup screens.

Here's what to look for.

Also: Is OneDrive sending your Windows files to the cloud? Here's why

But if you use a Microsoft account to sign in as part of a clean install of Windows 11, that option is nowhere to be found. That's true whether you use an existing account or create a new account.

When you get to the page where you add your Microsoft account, there's a paragraph of extremely fine print that includes this text: "We'll also back up your files and photos on this device to OneDrive to help keep them safe."

Here, see for yourself.

Here's a closer look at that fine print.

There's no option to specify that you prefer your files saved locally. And within 10 minutes of that first OOBE screen, Windows changes your settings and automatically begins backing up the contents of your local Documents, Pictures, and Desktop folders to OneDrive.

Also: Want Microsoft 365? Just don't choose Premium - here's why

It's not just Windows, either. Anyone running a pre-release version of Microsoft 365 Personal or Family found out recently that new files created in Word are auto-saved by default in OneDrive (or your preferred cloud destination, if you've set up that option).

When this release rolls out to the general public, you'll be able to change this option so that files are saved locally by default, but that requires a trip to the ever-confusing Word/Excel/PowerPoint Options dialog box.

Where are my files?

If you're saving files locally, you'll find a group of default folders in your user profile. The Documents folder, for example, is located in c:\Users\your_profile_name\Documents.

OneDrive Backup moves those files to an alternate destination: c:\Users\your_profile_name\OneDrive\Documents. The files remain on your local PC and are synced to the OneDrive cloud. That's the backup part of the deal. If you have sufficient cloud storage, you can also choose to back up your Music and Videos folders, which are not included in OneDrive Backup by default.

But because this is Windows, it's possible that those local folders, which are now empty, will remain on your PC even after your files are relocated and backed up to OneDrive. That's where people get confused. If you're accustomed to finding your files in the default folders of your local user profile, it's a rude shock to open those folders and discover that your files are no longer there.

Why is Microsoft doing this?

Skeptics will point out that these changes are in uncanny alignment with Microsoft's business interests. The company collects revenue from its cloud services, and steering user files into the cloud encourages those customers to pay for more storage, so ... do the math.

Also: How to upgrade an 'incompatible' Windows 10 PC to Windows 11 - 2 free options

But there's also a significant benefit for Microsoft customers in these changes. Files that are only stored locally and not backed up to the cloud are at high risk. Those files will be lost and unrecoverable if the device on which they're stored is stolen, if it falls victim to a ransomware attack, or if the system drive experiences a catastrophic failure. All of those things happen!

On the flip side, some of Microsoft's customers simply don't want their files stored outside of their own control. They might be concerned about privacy or security or having those files used for training AI, or they might have too many files to fit in the free 5GB allocation and they don't feel like paying for more storage.

The reasons don't really matter. If you don't want your files uploaded to the cloud, you should be able to just say no. Once you turn off OneDrive Backup, your files are stored locally, and it's on you to back them up safely.

How to undo OneDrive Backup on Windows 11

It bears repeating: OneDrive Backup doesn't delete any files from your local storage -- it just moves those files to a separate folder in your user profile and then syncs that folder to OneDrive.

Undoing the change is usually a straightforward process: turn off the backup feature for each folder, and then move the contents of those folders back to the default folder in your local profile. Recent changes to this feature have made these moves much easier, but the new interface remains messy and confusing. Naturally, those changes are not documented anywhere -- at least as far as I can tell.

Here's how it works. Note this assumes you are running Windows 11, version 25H2, that you are signing in with a personal Microsoft account, and that OneDrive Backup is enabled.

1. Open OneDrive Backup settings

Press Windows key + E to open File Explorer. In the left navigation pane, find the icon for your personal OneDrive account -- it should be named something like Username - Personal. Right-click that icon and then click OneDrive > Settings. That opens a dialog box with the top category, "Sync and backup," selected. Click the "Manage backup" button.

In Windows 11 version 25H2, you have an easier alternative -- go to Settings > Accounts > Windows Backup and then click the "Manage sync settings" button.

In either case, you get to a dialog like the one shown here.

Make a note of which folders are labeled as "Backed up," but don't change any settings yet.

2. Turn off OneDrive Backup for all folders

In the dialog you opened in step 1, slide the switch to the Off position for the first folder in the OneDrive Backup list -- in this case, the Documents folder. Choose the second option, "Stop Backup and choose where to keep files" and then select "Only on my PC." Click Continue.

Repeat this process for each of the other backed-up folders. When you're done, each folder in the list should have a status of "Not backed up." Click the Close button.

In my testing, I ran across what appears to be a bug. If the status for each folder reads "Ready to back up," and the switch turns itself back on after you attempt to turn it off, just click Close. Don't click "Save changes" or you'll re-enable OneDrive Backup!

3. Open a new File Explorer window for your local folders

In the File Explorer address bar, type %userprofile% and press Enter to display a list of the local folders in your user profile. Open a tab for each of the folders you've moved back to your local PC -- in this case, Documents, Pictures, and Desktop. You should see your data files in each of those folders. Don't close this window yet

4. Confirm that the OneDrive files have been restored to your local folder

Press Windows key + E to open a second File Explorer window. In the address bar, type %UserProfile%\OneDrive and press Enter. Look for the three folders that were previously backed up -- Documents, Pictures, and Desktop. Open each folder to confirm that it's empty.

If you see any files in those folders, press Ctrl+A to select all files in that window and Ctrl+C to copy them. Then right-click in the corresponding folder in your local profile and press Ctrl+V to copy the files back to their local home.

Also: How to upgrade from Windows 11 Home to Pro - without overpaying

After you confirm that all your files are intact in your local user profile, you can safely delete the empty, duplicate folders in OneDrive.

Disable OneDrive Backup reminders

If you never turned on OneDrive Backup, you might see a "Start backup" button in the File Explorer address bar for your Documents, Pictures, Desktop, Music, and Videos folders. Don't click that button unless you want to enable the feature.

Right-click that button and use the option on the shortcut menu to turn it off. You will need to repeat that action for each of the five local folders that are available for OneDrive Backup.

How to undo Microsoft 365's autosave-to-the-cloud option

At this time, this feature is only available to subscribers using preview releases of Microsoft 365. It has not yet rolled out to the Current Channel, at least not on the test PCs I checked.

But if and when you see this feature, you can turn it off by going into Word/Excel/PowerPoint Options and clicking the Save tab.

Clear the checkbox that reads "Create new files in the cloud automatically." When you do, you'll see a "Save to local location" box that you can select. Specify your preferred home folder for Word, and you're good to go.

Any questions?

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