It happens regularly that when certain updates to software are rolled out, two things are fixed, but then again, something is scrapped. That seems to be the case now with the macOS 12.3 beta update.
Should you be a user of OneDrive and Dropbox, it might be better to wait a little longer before installing the macOS 12.3 beta update. The update ensures that it is not possible to open online-only files from third-party apps. And that is quite a thing for these services.
macOS 12.3 beta ruins Dropbox and OneDrive capabilities
Dropbox and OneDrive are services that rely on storing files in the cloud and accessing them in the same way. The problem lies in the so-called kernel extensions that have been changed by the macOS 12.3 update. As a result, it is not possible to open the online-only files. DropBox itself had warned about this beforehand and got it right with the release. Fortunately, this is still a beta update, so it is possible that the problem will be solved in the final release. OneDrive also has problems with the new update and does not work as it should.
Both Microsoft for OneDrive and Dropbox are reportedly already working on fixing the problem in cooperation with Apple. Should you be using the macOS 12.3 beta itself and still want to open your files, you should disregard the specific third-arty apps for a while. By looking up the files via Finder, you could still get to them and thus partially solve the problem. Of course, this is not ideal.
Waiting a little longer
It will probably be some time before macOS 12.3 finally appears. After all, macOS 12.2 was only released last week. If you have downloaded this update, you should pay attention to your battery. It may be that your battery runs out of power a lot faster than you are used to. How that works exactly, you can read here.