OneDrive doesn't support dotfiles and thus can't sync Git repos.
This does not appear to still be the case based on testing just now (creating a folder named ".foldername", containing a file named ".testfile" then verifying that they've synced up to OneDrive). Several years ago it didn't support syncing folders with a . in the name, but that was resolved 3 years ago.
With Microsoft's relatively new focus on Git, I can't imagine that problems with repositories stored in OneDrive folders would remain unfixed.
I will note that there are names that Windows Explorer won't let you create - notably, names beginning with a ".". That's an Explorer issue, not a OneDrive or filesystem issue - you can create such files and folders programmatically or from a command prompt.
Err... I can’t imagine a scenario where one would want to use OneDrive/Dropbox to sync git repositories. It’s like having your local Dropbox folder inside your local OneDrive folder — only a lot worse.
I keep my .tex, .md, and .org files under source control, but I don't bother syncing to GitHub. I just back them up with the rest of my personal (non-code) files.
This just sounds like a horrible scary idea. What happens if I change something in a repo on multiple machines - a OneDrive merge conflict inside .git sounds like a nightmare.
