Create a text file using Notepad.exe in the OneDrive folder within File Explorer or any other OneDrive sync location, such as Desktop\Downloads\Documents. Next, edit the text file and enter sensitive keywords (configured in the policy), and save it. The file will save and sync to OneDrive without being detected.
16.0 MP1\MP2, DLP 16.0 RU1\RU2
This is a defect and resolved in DLP 16.1
Issue is resolved in DLP 16.1, refer to Detection Fixed issues in DLP 16.1 Release Notes.