OneDrive failing to install – Setup logs “Something went wrong waiting for the client to signal us. Error code: 0x102”

Symptom:

When running OneDriveSetup for the first time as a user, the wizard appears to complete but fails silently and no icon is present in the system tray.

Looking at the setup logs in C:\Users\<username>AppData\Local\Microsoft\OneDrive\setup\logs you see the following snippet:

SetupController: Waiting for client event in order to continue

SetupController: Something went wrong waiting for the client to signal us. Error code: 0x102

 

Cause:

The option to prevent users from using OneDrive has been applied

Verify by checking the following registry key:

HKEY_LOCAL_MACHINE\SOFTWARE\Policies\Microsoft\Windows\OneDrive

DisableFileSyncNGSC =1

 

This correlates with the following setting in Group Policy:

Computer Configuration > Windows Components > OneDrive > “Prevent the usage of OneDrive for file storage”

Flip the registry key to 0 to test, if this resolves the problem modify in Group Policy

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