The Microsoft OneDrive Sync Client is next in line to receive a native Apple M1 version, as announced by Microsoft. According to Ankita Kirti from Microsoft: “We know this has been a long awaited and highly requested feature, and we’re thrilled to make it available for early access.” To enable Apple M1 support please make sure you’re on the Insiders Ring, followed by opting in to the Apple M1 preview in OneDrive Settings -> About.
This new version should significantly improve sync performance, especially when you have many files in OneDrive. There is also a new version for Windows based ARM devices available.
Looking forward to one of the last major Microsoft applications getting a native Apple M1 version: Microsoft Teams. Nothing has been announced yet unfortunately.
Update December 8th, 2021: Direct download link (Microsoft) for the Apple Universal version. Keep in mind this is a preview version.