Office Autosave feature acting very weird

I am out of ideas.

I can't enable the Autosave toggle button within a particular Word document when putting that document in a particular folder on OneDrive and then opening said document from the Recent files in the Start Menu. It simply says that Office can't Autosave this document in the designated location.

Taking the document out of the folder or renaming/moving the concerning folder to another location within OneDrive fixes this issue for some reason. This only happens with 2 particular Word documents in the concerning folder. Copy and pasting the contents in a new Word document and giving it the same name still doesn't fix this.

Using Windows 11 Pro 22H2 with a Office 365 subscription.

Why is this happening?

Using Windows 11 Pro 22H2 with Microsoft 365 subscription here and your problem is new to me (thank goodness) but is sounds fairly common
Unable to autosave a Microsoft Word document