"Online presentations aren't supported"

You said, "but it is a local (C:Drive) file." That is correct, but it is a local (C:Drive) file that is being synced with OneDrive. This is considered an "online file" by Articulate. It doesn't help that the error message is inaccurate when it says "Save a copy to your local drive to continue." What Articulate really means is, "Save a copy somewhere on your local drive not syncing with OneDrive to continue." 

And this is the crux of the problem. You can't edit/modify PPTX files using Articulate if they are being backed up by OneDrive. This is very counterintuitive as most people naturally now want to back up everything, and OneDrive is the method of choice. It means having to store all of your Articulate presenter projects in a space on your Hard Drive that is vulnerable to being lost. (Or using another tool like SyncToy to make up for this). 

What you are saying is exactly why I want Articulate to fix this. I would also argue that If the file AutoSave is turned off, there is no reason that Articulate should prevent you from using Presenter. But Articulate just ignores this setting. I can understand how things might get messed up if your file is syncing (autosaving), but I really think Articulate could make an exception if you turn off AutoSave. 

Having said this (beware of rant), when was Presenter last updated anyway? Are there any resources dedicated to making updates to it now? I still use it frequently when I get a PowerPoint file with lots of animations I don't want to recreate by hand in Storyline. For presentations that don't have branching/high complexity it is still my tool of choice. But sometimes I wonder if that is a mistake because it seems like the orphaned older brother these days.

To better answer your question: 

Is there a folder that I should be using that will create a "local" file?

Basically anywhere not being backed up by OneDrive. For example, you might have to go to your root C: drive and create a folder there if everything in your user profile is being backed up. C:\Projects for example.

I am having the same problem with not being able to insert a character due to One Drive syncing by my company.    Not only am I not able to add a character, when I attempt to do so (even after pausing syncing)  Presenter locks and I can only close it through Task Manager.   

Please help us to use the product without unnecessary frustration.   

Thanks!  

I am trying to develop a PPT as a storyboard before going into Articulate Storyline. Since my 360 Subscription also gives me access to Presenter/Characters, I'm trying to pull a few into the storyboard. However, I keep getting the message that "Online presentation aren't supported". I have saved the presentation to my C: drive on my desktop, and it still will not allow me to use Characters. What am I doing wrong? 

I just got a new laptop and had this same issue (Articulate updates wouldn't even install on my old one anymore). This worked for me:

https://support.microsoft.com/en-us/office/files-save-to-onedrive-by-default-in-windows-10-33da0077-770c-4bda-b61e-8c8e8ca70ac7

I followed these instructions to turn off automatic OneDrive backup. Then I opened my ppt presentation, saved it as a new file in the Documents folder, and was able to use the Articulate features in my ppt.

Why can't they just fix this issue. Many business use a back up and some of us cannot turn off the Sync issue rendering this product useless. I agree so very frustrating.

Just saw this error while working with a colleague. She was indeed saving to her local drive. I had her exit Presenter, pause syncing to OneDrive, then re-open her file - issue resolved. So our work-around is to disable sync to OneDrive while working in Presenter. Works like a charm. 

May work like a charm for some, but for us that cannot disable syncing due to network policies.

Hello there, Will!

Even though there is a OneDrive folder on your local drive, it looks to be synching up to the OneDrive network. Disabling the syncing or saving the files to another folder on the C: drive should do the trick.

Also, we've had a few folks run into the same error in Presenter '13. This article outlines the steps to publish an online presentation with Presenter.

I hear your use case, though, and submitted a feature request on your behalf so that we can take it under consideration. If we make changes to this area in the future, we promise to let you know.

As always, thank you for your insightful contributions!

Also, to be fair, Articulate continues to make maintenance updates/bug fixes to Presenter. But the last major feature released for Presenter (that I count) was the addition of the Content Library in April 2019. That is definitely a significant one, but compared to Storyline it's been quite a while. I just wish it had things like "export to MP4" and the Modern Player as well as the ability to work with files in OneDrive desktop folders.