This started happening sometime in the last week and a half. I couldn’t turn on the Windows 8.1 option to make all files available offline. There was this message: "you can’t turn on this setting while Onedrive is being set up." The Application Error was in the Event Log.
I had this both on Windows 7 and Windows 8.1. Uninstalling OneDrive and then reinstalling fixed the problem for Windows 7.
For Windows 8.1, I found a hint on a Microsoft forum to enter (in a Command Window):
It runs a while and everything was fixed. Took two hours wading through junk to find the hint.
Otherwise, I still love OneDrive. It just keeps solving more and more problems.