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While saving an existing Excel file in a directory that is synced with OneDrive or copying and overwriting a file in a directory that is synced with OneDrive, the operations may fail with an Exception that originates from OneDrive. Similar to this:

System.IO.IOException: Access to the cloud file is denied. at System.IO.__Error.WinIOError(Int32 errorCode, String maybeFullPath) at System.IO.File.InternalCopy(String sourceFileName, String destFileName, Boolean overwrite, Boolean checkHost) at Microsoft.Flow.RPA.Desktop.Modules.Folder.Actions.FolderActions.CopyFolder2(String sourceFolder, String destinationFolder, Boolean overwrite) at Microsoft.Flow.RPA.Desktop.Modules.Folder.Actions.FolderActions.CopyFolder(Variant source, Variant destination, Variant& copiedFolder, Boolean overwrite) --- End of inner exception stack trace --- at Microsoft.Flow.RPA.Desktop.Modules.Folder.Actions.CopyFolder.Execute(ActionContext context) at Microsoft.Flow.RPA.Desktop.Robin.Engine.Execution.ActionRunner.Run(IActionStatement statement, Dictionary`2 inputArguments, Dictionary`2 outputArguments)


There seems to be an issue with OneDrive's File On-Demand functionality that creates fake files in the local directory without actually downloading them.


Disable OneDrive's File On-Demand feature through the Settings in the OneDrive shell extension.

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