Error backup local one drive folders (server 2019)

You can try exclude-files-attributes with the Offline attribute. Big discussion and an old fix at the below:

Exclude offline files broken with OneDrive?

The Microsoft documentation says that if you use Storage Sense, it will delete the local copy after awhile.
If this happens, and the exclude works to ignore that file’s existence, it will look to Duplicati like a deletion, and the file won’t appear in the Restore view for backup versions which exclude it, however other backup versions that include it may hold the blocks of its content in the backup, so adding it back is just a list edit.

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