Both Microsoft and Dropbox started alerting users to this change before the macOS beta even dropped. Dropbox’s page is relatively sparse. The page notifies users that Dropbox’s online-only file functionality will break in macOS 12.3 and that a beta version of the Dropbox client with a fix will be released in March.
Microsoft’s documentation for OneDrive’s Files On-Demand feature is more detailed. It explains that Microsoft will be using Apple’s File Provider extensions for future OneDrive versions, that the new Files On-Demand feature will be on by default, and that Files On-Demand will be supported in macOS 12.1 and later.
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