OneDrive test failing with system.exception: Failed to create OneDrive ENow test folder.

Symptom

The OneDrive Upload/Download test reports a connection status failure, with the exception Failed to create OneDrive ENow test folder.

To confirm the cause, sign in to the Microsoft 365 portal as the OneDrive test account and click OneDrive in the app launcher. If you are redirected to your Delve profile page instead of the OneDrive for work or school site, this article applies.

Cause

The user's personal site has not been created, and the account does not have permission to create it. The site is normally provisioned the first time the user browses to the OneDrive page, so an account that has never opened OneDrive and cannot self-provision will fail this test.

Workaround

A Microsoft 365 administrator must grant the account the right to create its My Sites site, because the OneDrive page is created on My Sites.

1. In the SharePoint admin center, click user profiles.
2. In the People section, click Manage User Permissions.
3. Add the users who require permission to create their My Sites site. By default this setting is Everyone except external users.
4. With the added user or group still selected, scroll to the permissions section and select Create Personal Site (required for personal storage, newsfeed, and followed content).
5. Click OK, then have the user browse to the OneDrive page so the site is created.

Once the personal site exists, re-run the ENow OneDrive test.

Note on these steps: the navigation above describes the classic SharePoint admin center pages. Microsoft has since reworked the SharePoint admin experience, so the exact path to user profiles and Manage User Permissions may differ in your tenant. The permission you are granting — Create Personal Site — is the same regardless of where the setting now lives. Use the Microsoft reference below for the current navigation.

Reference

You're redirected to your Delve profile page after you click OneDrive on the Microsoft 365 app launcher (Microsoft Support)