How should I handle file recovery and password changes when moving from Folder Redirection to OneDrive?

Password behavior depends on how your on-premises Active Directory and Entra ID are configured. In a hybrid-joined environment, enabling the policy to silently sign users into the OneDrive sync client with their Windows credentials generally allows OneDrive to keep working after a domain password change. It uses the device’s single sign-on token rather than repeatedly asking for the password. Include password changes and expired sessions in your pilot, and monitor OneDrive health so a client that stops syncing doesn’t go unnoticed.

Be careful with the migration sequence. Remove the existing network-share folder redirection and allow the folders to return locally before enabling Known Folder Move. KFM can behave badly when Documents or Desktop still point to a redirected share, so move users in small batches and compare file counts and folder coverage during the pilot. Also, Office 2016 is out of support, so although the separate OneDrive client may continue to work, plan an Office upgrade for reliable long-term Microsoft 365 compatibility.

OneDrive provides version history for files, and deleted items can usually be recovered from the recycle bin. It also has a broader restore feature for rolling a user’s OneDrive back to an earlier point after something like accidental mass deletion or ransomware. However, version history and the recycle bin shouldn’t be treated as your only backup. Use a separate Microsoft 365 backup product and test actual restores before retiring the file-server backups.