Dragging proxy icon doesn't work with Office?

I want to drag an Office365 file from the proxy icon (which is what the little icon next to the file name is called- I’ve just learned) to Yoink or to Apple Mail but no luck.
Anyone have any ideas on how to activate it or does MS not allow this convenience? It works on other file types just not MS ones. I’m on a 2019 MB Pro with Catalina
Thanks as always

Office 365 applications provide a different experience based on where the file is saved. Files stored on or opened from OneDrive, OneDrive for Business, and SharePoint Online are not on the local drive, so the proxy icon does not work. By default, the OneDrive client opens synced files directly from the cloud instead of the local drive, so the proxy icon does not work even if you double-click on the local file in your synced OneDrive or SharePoint folder on your Mac.

If the file is stored on the local drive or a traditional network drive (not the cloud), then the proxy icon works normally.

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Huh. That’s good to know. I’ve never used OneDrive so I wasn’t aware of this.

I’m guessing jahala is right, but the other thing that I’ve seen trip people up is that the proxy icon only works if the file has not been modified since it was last saved.

But that’s probably not the issue in this case.

I will check that out. Thanks!