@Robert Pate, we did not find an alternative fix for this. New users have to enter their username once to start the OneDrive configuration. Once that is done, it no longer requires the credentials.
I also think it is a bug.
We've reached out to MS support for help but other than us providing log files, we did not receive any solution/workaround. We are going to close the support case as we've found a workaround. I don't have the time to fix their bugs 😉