OneDrive – Set up of protection of important folders not working [0x201]

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In a current project I was struggeling with the OneDrive Client in a VDI environment. OneDrive itself was working without problems, but I wasnt able to setup the protection of the important folders like Desktop,Documents and Pictures.

You always received the following message: “Your IT-administrators has set a policy that prevents changes to known folders. Please remove this policy and try again 0x201”

After checking all the OneDrive settings configured via ADMX we still couldnt get rid of the issue. After some trial and error we could find the root cause for this problem. In the Default User GPO we enabled the setting: “Prohibit User from manually redirecting Profile Folders”. This is blocking the OneDrive client moving the folders.

After disabling this setting via GPO everything was working as expected. Here is the affected registry key.

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