Moving home directory
I am trying to move my home directory to an external SSD drive to relieve a problem with space becoming very tight on the internal system drive. I am trying to follow the procedure in this article:
https://www.lifewire.com/move-macs-home-folder-new-location-2260157
I am stopped at the first step: if I drag my home directory to the external drive, I get "The operation can't be completed because <home directory name> needs to be downloaded."
I believe this is because there are files in it (particularly in ~/Library) that sync with a cloud server (specifically OneDrive). In fact, my Library folder is shown greyed out in the Finder, although it can be opened just fine.
Is there a way to work around this problem, even if it involves reinstalling the OS from scratch? If so, how? If I restore my home directory from backup, it will contain the cloud-based files (I know this because I did it recently; this machine is new) and I'm pretty sure I will just be back in the same place.
Any guidance would be appreciated, assuming this is possible.
MacBook Pro 16″, macOS 13.1