Yes, the onedrive sync problem is ongoing (I am the person who first raised the problem of all local files being deleted when adding a file; removing and reinstalling onedrive accounts did not fix the problem for me).
But, I would not blame insync for this issue. Companies like Microsoft and Apple have been changing their underlying frameworks (there was an abundance of complaints in Apple forums about Apple redoing its cloud storage frameworks), which have made rsync and similar software much more difficult to implement). My guess here is that MS did something without notice and explanation for its cloud storage and has left insync holding the s__ bag. Insync has to essentially reverse engineer what MS did to onedrive to restore functionality.
For me, the solution has been to stop using onedrive for cloud storage and instead look to other options that still play nice with insync.