Windows 10 Fall Creators Update brings a new OneDrive Files On-Demand which helps users save storage space on their computer. OneDrive Files On-Demand won’t automatically download all of the files and folders from your OneDrive account — instead, it will only download them locally when you actually open a file. The feature is very much like OneDrive Placeholders, but it’s been significantly improved with the Windows 10 Fall Creators Update.
Microsoft actually started rolling out the Windows 10 Fall Creators Update yesterday which is supposed to bring the OneDrive Files On-Demand feature. However, the feature isn’t included as part of the OS update itself — instead, it is tied to the OneDrive client in Windows 10. As a result, some users aren’t getting Files On-Demand right after installing the Fall Creators Update.
If you are also experiencing the same issue, you can download the updated OneDrive client from here (warning: direct download link) which includes the Files On-Demand feature. After that, you will need to restart your computer and open up OneDrive to finish setting up your account. Files On-Demand should now start working on your PC — but if it still does not work, sure it is enabled in OneDrive settings.