In June one of the Windows optional update ‘Update for Windows 8.1 for x64-based Systems (KB2962409)’ contained long list of fixes as seen in its details. And among the list was KB2965174 titled “OneDrive improvement update for Windows RT 8.1 and Windows 8.1: June 2014” .
This update just mentions that it includes improvements for Microsoft OneDrive in Windows RT 8.1 and Windows 8.1 without elaborating what the improvements are. When you install it, adds various OneDive options as we can see in the OneDrive icon in the Systray – providing option to Pause Sync, troubleshooting, settings and other options.
But this update had an issue of showing the systray blue Sync icon which continues to say ‘OneDrive is starting up…’, even though OneDrive status is Up to date as can be seen here. There was no issue in actual syncing but the icon and status shown were wrong.
Lots of OneDrive users had posted about it and Microsoft too was aware of it and was working on it and had mentioned that “Microsoft is aware of this issue and our product group is working on it. As soon as we have a fix, it will be rolled through Windows Updates….”
And with latest Windows Update released on 22nd seems to correct this issue. The update is "Update for Windows 8.1 for x64-based Systems (KB2980654) " received via Windows Update.
When you check for details about the update, its http://support.microsoft.com/kb/2980654 and it says "OneDrive reliability update for Windows 8.1 and Windows RT 8.1" . So check for this reliability update and see if its already installed or can check it from the link given above. While the update for Windows RT 8.1 can be obtained only via Windows Update.
So installing this update corrects the wrong status icon shown in systray. Please note that this update corrects only this icon issue, if you are having actual syncing issue,this update may not resolve and you might have to try the troubleshooting or some other option.
After installing this update users have reported that it has solved their Wrong status icon issue. For me too it has resolved the issue. This is the version after installing the update.