0x8007017C error when Work Folders syncs files in Windows 10

Symptoms

When Work Folders syncs files in Windows 10, you receive this error message:

The cloud operation is invalid.
(0x8007017C)

This error occurs if the following conditions are met:

This issue typically occurs when Work Folders is set up on a new device or is configured on multiple devices.

Cause

The December 8, 2020—KB4592449 (OS Builds 18362.1256 and 18363.1256) update contains an application programming interface (API) change that causes Work Folders to fail to sync files from server to device.

Resolution

To fix this issue, install one of the following updates:

Workaround

To work around this issue, disable the on-demand file access feature by using one of the following methods.

Method 1: Disable the on-demand file access feature by using Work Folders control panel applet

Here's how to proceed:

  1. Open Control Panel.

  2. Select System and Security > Work Folders.

  3. Clear the Enable on-demand file access checkbox.

Work folders control panel applet

Notes: 

  • Make sure the device's disk space is sufficient. All user's files will be downloaded from the Work Folders server to the device if the feature is disabled.

  • If the issue occurs on a new device, you can reenable the feature after the sync from the server to the device is completed.

Method 2: Disable the on-demand file access feature by using group policy setting

Here's how to proceed:

  1. Open Group Policy Management Console.

  2. Select User Configuration > Administrative Templates > Windows Components > Work Folders > Specify Work Folders settings.

  3. Change the On-demand file access preference setting to Disabled.

Work Folders group policy setting

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