red circle with X in file explorer

The red circles with an X in File Explorer typically indicate that the files are marked as offline. This behavior can occur when using Azure File Sync, where files that have the offline attribute set will display a grey X icon when accessed over SMB. This is not specific to Azure File Sync, as Windows File Explorer shows similar indicators for files with the offline attribute set.

If you want to manage the visibility of these icons or change how tiered files are handled, you can configure Azure File Sync to skip setting the offline attribute by modifying the registry on the server. However, be aware that this setting applies globally across all files and may affect file recalls.

For more detailed management of tiered files and their attributes, you can refer to the Azure documentation.

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See https://support.microsoft.com/en-us/office/what-do-the-onedrive-icons-mean-11143026-8000-44f8-aaa9-67c985aa49b3 .