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Indeed, they are probably one of the worst cloud "storage" services ever to exist.

I also lost data on their platform. Not sure why anyone would like to still use them. This follows a pattern of Microsoft mishandling their user's data. They even routinely delete code hosted on their servers when they shutdown services without handling the migration well.

I'm building a digital document archive organizer platform that relies on users' own local machine storage and their cloud storage, and the only provider I trust to support are s3-compatible storage and Google drive (much as I'm wary of Google, Gdrive is reliable). Dropbox, Box, etc are also ok, but the storage is kind of expensive.

I would never support OneDrive.

Data request. Or just sue them.

You make it sound way simpler than it is. Their ToS are probably written in a way they are fully protected in cases like this.

ToS are not laws and can not override laws. If you are in any civilized jurisdiction, such as EU, you can sue.

This is data theft and there should be criminal charges against Microsoft for this nonsense.