Without warning, OneDrive is now requiring files that come from an NTFS-formatted drive. A thread posted to the Microsoft forums that began on July 1, shows…
The location where you were trying to create OneDrive folder belong to a drive with unsupported file system. To have OneDrive use a different location, click “Set up OneDrive” and point OneDrive to a NTFS drive. To use the existing location with OneDrive, you need to format it with NTFS then click “Set up OneDrive” to configure your account.
The thread has quickly filled up with complaints from irate customers. Due to the change, OneDrive simply stops synching files. So far, Microsoft has supplied no response.
Thread: OneDrive NTFS Message
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