Microsoft's accouncement: https://techcommunity.microsoft.com/blog/microsoft365insider...
Word has defaulted to saving in OneDrive (if you turn on autosave and you're signed into an MS account) for years now, I think since the Office 2016 > Office 365 update. The only real change I see is that the document will now be given a name with the date instead of just 'Document 1'. Maybe it's a little more aggressive about turning on autosave for you? The autorecover location is still in appdata.
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