Hi Levi. I'm Greg, an installation specialist, 10 years awarded Windows MVP, and Volunteer Moderator, here to help you
This looks like a bug in the latest version. If you want to report this to Microsoft use the Feedback Hub app in Start Menu where developers are tasked to process consumer feedback. They will not even see it here. This is a tech forums staffed mostly by volunteers trying to help others with your problems.
If you want to post back a Share link from your Feedback here others who see this thread can vote it up and add to it.
What you can do for now is here:
https://superuser.com/questions/1564874/cant-tu...
What worked for me is to right click on OneDrive folder in Explorer, choose Always keep on this device which stopped files from being removed from PC, but kept the box checked in Settings for Files on Demand.
I hope this helps. Feel free to ask back any questions and keep me posted. If you'll wait to rate whether my post resolved your problem, I will keep working with you until it's resolved.
______________________________________________
Standard Disclaimer: There are links to non-Microsoft websites. The pages appear to be providing accurate, safe information. Watch out for ads on the sites that may advertise products frequently classified as a PUP (Potentially Unwanted Products). Thoroughly research any product advertised on the sites before you decide to download and install it.