How to fix Error code: 0x80070005 when setting up Known Folder Move in OneDrive for Business

ISSUE

When setting up Known Folder Move in OneDrive for Business, you receive the following error message:

An unknown error occurred. (Error code: 0x80070005)

This is caused by a group policy preventing the the feature from running.

RESOLUTION

Use gpedit.exe, modify a Group Policy.

Navigate to User Configuration > Administrative Templates > Desktop > Prohibit User from manually redirecting Profile Folders. 

Set the value to “Not Configured.”