after upgrading n8n to 0.142.0 OneDrive node can’t upload files, when binary data is set to true. (ERROR: Unexpected token o in JSON at position 1 is displayed, more details in image below).
The upgrade was done from 0.138.0 so it’s possible that upload was broken in a version after 138.
As a quick test could try setting the environment variable below? There was a change in the HTTP library used in the backend and that could be the cause of your issue.
For now I would say it depends on what is easier for you, Using the option isn’t the end of the world and it will get you working until one of the n8n chaps can take a proper look.