I would be shocked if this hasn't had some set of controls to disable it in Group Policy for months now.

This is just rent seeking against Home users.

People with One Drive through corporate Azure sjbscriptions (rather than the free "you have a microsoft login" tier) already have fairly robust controls available for handling and securing private data. There's even special Azure tiers for government work that are even further secured.

This is only going to impact home users and conpanies without strong IT teams. Which is an egregious amount of people, don't get me wrong. It's also a horrible anti-consumer move. But this isn't "Microsoft fucks over their golden calf: business users".