FinderSync extension menu not appearing inside MS Onedrive location

I have an application that uses a FinderSync extension to show a couple of my application specific menu items when User ctrl+clicks open the context menu on a file in Finder. My Menu appears everywhere except when I move a file in my company MS Onedrive sync folder. My menu items are not visible in the context menu and only MS Onedrive menu items are visible. The same happens with other findersync menu items from other apps like dropbox for example. the menu items vanish whenever a file is moved into MS OneDrive. This didn't use to happen before. Anyone facing this? Is this expected behaviour? Is any change in Mac OS or MS Onedrive may be causing this? I am using latest Mac OS Monetary 12.6.6