Thanks very much for this guide - very clear and simple. I have just run option 2 which went very smoothly and all user folders were moved to D:\
One problem I noticed though after the OOBE the OneDrive App closed immediately - all other apps were fine. This happened on existing users and new one created as part of the OOBE. Nothing was written to the event viewer log.
The shortcut was at: D:\Users\Hali\AppData\Roaming\Microsoft\Windows\Start Menu\Programs
And the target was: D:\Users\Hali\AppData\Local\Microsoft\OneDrive\OneDrive.exe (and OneDrive.exe existed in this place).
Scouting around %appdata% in case something hadn't been updated I found this file D:\Users\Hali\AppData\Local\Microsoft\OneDrive\Update\Update.xml
Going to the URL in IE and then running OneDriveSetup.exe fixed it. Not sure why it happened (OneDrive was not fully synchronized when I ran sysprep) but perhaps this will be useful to someone.
<?xml version="1.0" encoding="utf-8"?>
<update minapplicable="126.96.36.199" maxapplicable="17.9.9999.9999" currentversion="17.3.5951.0827" rescan="1440" throttle="25">
<binary url="https://oneclient.sfx.ms/Win/Prod/17.3.5951.0827/OneDriveSetup.exe" sha256hash="AihnAeYSqTTwn2gJ7+TpDd/30bDgXg33uU4wKR4avOo=" sha1hash="kOsFVdmRiH/4bj91Oe58OXetuWM=" />