Preview app unable to edit documents on the Desktop and in Documents synced with OneDrive

My team and I are deploying OneDrive to nearly all of our clients and enabling Backup/Known Folder Move. We’ve had a lot of issues, but one thing that has recently come up that I can’t find an answer for is this message in the Preview app when opening a document in the Desktop or Documents folders - “The original document can’t be changed, so a duplicate with your changes has been created” The file(s) in question have the correct permissions and ownership (I’ve even tried setting the permissions to 777…), are not locked, and are otherwise editable once outside of the Desktop and Documents folders. Even more weird is that once you save the “duplicate” mentioned in the message above, you can rename it to the original name and overwrite the original document with no errors or issues. Any ideas what is going on? I’ve also tried removing any x attributes on the file before opening it in Preview. Once I open the file, I get the same message and I can use xattr -l my_file to see that Preview has added com.apple.quarantine: 0082;64c950c7;Preview; to the file… What the heck Preview?