If I launch OneDrive using the built-in alias (/onedrive in Path bar), it takes me to the correct folder. But when I click Go Up, to go one level previous, it takes me to the Desktop.
But if I launch OneDrive by copying-pasting the path, then it behaves correctly.
Any way to fix the alias behavior?
I think I can fix it by editing the alias and typing in the path, but since it is built-in, it doesn't let me edit.
That is where OneDrive is in the folder tree; Microsoft add it below Desktop. (It's a virtual folder, which shows the same content as the alternative real path, but they're technically two different folders. Similar to how some of the files in Desktop itself can be found in C:\Users\<username>\Desktop.)
We'll be adding the ability to override built-in aliases soon but, for now, the easiest thing would be to define your own alias (e.g. /od, even less to type) which points to the folder you want it to go to.