I wouldnt call it backup. It is keeping versions of a file. Its keeping deleted files for a while, in the recycle bin. But you have to use the web interface to access those. Nor can you restore entire folders in one go, like File History could. File History works still, but one cant manually run the “delete all but the latest/last month/last year” job anymore. It just fails. The restore function works (well, I havent tested it after the new patch though).

Also, cloud copying the entire Documents folder? Theres so damn much crap and cache files put there. You gonna double your internet usage when playing some games, just for the cache files that is added, downloaded, changed, uploaded again and again. I’m glad I aint on a limit, but a lot of people in the rest of the world are.