SP shortcut for OneDrive doesn't work with PnP created document library

[jvanzeelandBSU]

Hi all,
We are experiencing an issue when trying to add a SharePoint document library as a shortcut to OneDrive. When attempting to add the shortcut, we receive the following error message: “1 shortcut is not added. Item not found.”
We use a script to create a new SharePoint site, remove the default document library, and then create a new document library. This script uses the PnP PowerShell module.
I have already contacted Microsoft, and they verified the script. However, since they do not support PnP, they were unable to further troubleshoot the issue.
We would like to understand why we are unable to add the shortcut to OneDrive for the newly created document library. I’ve attached the script below.

We are not looking to modify the script as a whole, but only to troubleshoot the issue. Any help is appreciated.
Thank you!

<#
===================================================================================================================================

 File                   : Create Client SharePoint Sites
 Author                 : 
 Company                : BSU 
 
 Description            : 

 Required modules       : PnP.PowerShell 

===================================================================================================================================
#>

# ==== Helpers (role resolution + robust permission) ============================
function Resolve-RoleName {
    param([Parameter(Mandatory=$true)][string]$Preferred)
    $candidates = switch ($Preferred.ToLower()) {
        "edit"        { @("Edit","Bewerken") }
        "bewerken"    { @("Bewerken","Edit") }
        "contribute"  { @("Contribute","Bijdragen") }
        "bijdragen"   { @("Bijdragen","Contribute") }
        "read"        { @("Read","Lezen") }
        "lezen"       { @("Lezen","Read") }
        default       { @($Preferred) }
    }
    foreach ($c in $candidates) {
        try {
            $rd = Get-PnPRoleDefinition -Identity $c -ErrorAction Stop
            if ($rd) { return $rd.Name }
        } catch {}
    }
    $avail = (Get-PnPRoleDefinition | Select-Object -ExpandProperty Name) -join ", "
    throw "Kan machtigingsniveau niet vinden voor '$Preferred'. Beschikbaar: $avail."
}

function Grant-WebRoleToUser {
    param(
      [Parameter(Mandatory=$true)][string]$UserOrGroup,
      [Parameter(Mandatory=$true)][string]$RolePref
    )
    $roleName = $null
    for ($i=0; $i -lt 3; $i++) {
        try { $roleName = Resolve-RoleName -Preferred $RolePref; break } catch { Start-Sleep -Seconds 5 }
    }
    if (-not $roleName) { $roleName = Resolve-RoleName -Preferred $RolePref } # final try
    for ($i=0; $i -lt 2; $i++) {
        try { Set-PnPWebPermission -User $UserOrGroup -AddRole $roleName -ErrorAction Stop; return } catch { Start-Sleep -Seconds 3 }
    }
    Set-PnPWebPermission -User $UserOrGroup -AddRole $roleName -ErrorAction Stop
    Write-Host "🔑 Web-permission: '$UserOrGroup' → $roleName" -ForegroundColor Green
}

function Grant-FolderRoleToUser {
    param(
      [Parameter(Mandatory=$true)][string]$ListIdOrTitle,
      [Parameter(Mandatory=$true)][string]$ServerRelUrl,
      [Parameter(Mandatory=$true)][string]$UserOrGroup,
      [Parameter(Mandatory=$true)][string]$RolePref
    )
    $roleName = Resolve-RoleName -Preferred $RolePref
    for ($i=0; $i -lt 2; $i++) {
        try {
            Set-PnPFolderPermission -List $ListIdOrTitle -Identity $ServerRelUrl -AddRole $roleName -User $UserOrGroup -ErrorAction Stop | Out-Null
            Write-Host "📂 Folder-permission: '$UserOrGroup' → $roleName op $ServerRelUrl" -ForegroundColor Green
            return
        } catch {
            Start-Sleep -Seconds 3
        }
    }
    # final attempt, throw on error
    Set-PnPFolderPermission -List $ListIdOrTitle -Identity $ServerRelUrl -AddRole $roleName -User $UserOrGroup -ErrorAction Stop | Out-Null
    Write-Host "📂 Folder-permission: '$UserOrGroup' → $roleName op $ServerRelUrl" -ForegroundColor Green
}
# ==============================================================================


Start-Transcript -Path "C:\BSU\Create Client Sites\CreateSharePointSites.txt" 

# Load PnP module
Import-Module PnP.PowerShell -ErrorAction Stop

# CSV path
$csvPath = "C:\BSU\Create Client Sites\Test.csv"
$logPath = "C:\BSU\Create Client Sites\site-creation-log.csv"

# SharePoint URLs
$adminURL = "<SP Admin URL>"
$sitesURL = "<Sites SP URL>"
$hubSiteUrl = "<SP HubSite URL>"

# Connect to admin center
$clientId = "<clientID>"
Connect-PnPOnline -Url $adminURL -Interactive -ClientId $clientId

# Read client data
$clients = Import-Csv -Path $csvPath

# Create log file
"ClientNumber,ClientName,Status,Message" | Out-File -FilePath $logPath -Encoding UTF8

function Connect-PnP-Admin {
  param($Url)
  try {
    return Connect-PnPOnline -Url $Url -Interactive -ClientId $clientId
  } catch {
    Write-Warning "PnPManagementShell connect faalde, val terug op DeviceLogin..."
    return Connect-PnPOnline -Url $Url -Interactive -ClientId $clientId
  }
}


# -------------------------------
# 🔹 Phase 1: Create all sites
# -------------------------------
foreach ($client in $clients) {
    $clientNumber = $client.ClientNumber
    $clientName = $client.ClientName
    $owner = $client.Owner
    $siteUrl = "$sitesURL$clientNumber"
    $siteTitle = "$clientNumber $clientName"

    Write-Host "`n🌐 Creating site: $siteTitle" -ForegroundColor Cyan

    try {
        $existingSite = Get-PnPTenantSite -Url $siteUrl -ErrorAction SilentlyContinue
        if ($existingSite) {
            Write-Host "⚠️ Site already exists: $siteUrl" -ForegroundColor Yellow
            "$clientNumber,$clientName,Skipped,Site already exists" | Out-File -Append $logPath
            continue
        }

        New-PnPSite `
            -Type CommunicationSite `
            -Title $siteTitle `
            -Url $siteUrl `
            -Lcid 1043 `
            -TimeZone 4 `
            -Owner $owner `

        Write-Host "✅ Site created: $siteUrl" -ForegroundColor Green
        "$clientNumber,$clientName,Success,Site created" | Out-File -Append $logPath
    }
    catch {
        $errorMessage = $_.Exception.Message.Replace("`r", "").Replace("`n", "")
        Write-Host "❌ Error creating site: $errorMessage" -ForegroundColor Red
        "$clientNumber,$clientName,Error,Site creation failed: $errorMessage" | Out-File -Append $logPath
    }
}

# Optional wait for site provisioning
Write-Host "`n⏳ Waiting 2 minute to ensure site provisioning completes..." -ForegroundColor DarkCyan
Start-Sleep -Seconds 120


# -------------------------------
# 🔹 Phase 2: Setup each site
# -------------------------------
foreach ($client in $clients) {
    $clientNumber = $client.ClientNumber
    $clientName = $client.ClientName
    $siteUrl = "$sitesURL$clientNumber"
    $siteTitle = "$clientNumber $clientName"
    $libraryTitle = "$clientNumber $clientName"
    $groupName = "Booster - File - Clienten"
    $AdminUrl = "<Admin URL>"
    $target = "ExternalUserSharingOnly"  # = New and existing guests

    Write-Host "`n🔧 Processing site: $siteTitle" -ForegroundColor Cyan

    try {
        Connect-PnPOnline -Url $siteUrl -Interactive -ClientId $clientId

        # $defaultLibrary = Get-PnPList | Where-Object { $_.BaseTemplate -eq 101 -and $_.Title -eq "Documenten" }
        $defaultLibrary = Get-PnPList | Where-Object { $_.BaseTemplate -eq 101 -and ($_.Title -eq "Documenten" -or $_.Title -eq "Documents") }


        if ($defaultLibrary) {
            Remove-PnPList -Identity $defaultLibrary.Id -Force
            Write-Host "🗑️ Default 'Documents' library removed" -ForegroundColor DarkYellow
        } else {
            Write-Host "⚠️ Info: Default document library not found" -ForegroundColor Yellow
        }

        # Create new document library
        New-PnPList -Title $libraryTitle -Template DocumentLibrary -OnQuickLaunch -ErrorAction Stop | Out-Null

# Ensure library exists (idempotent)
try {
  $library = Get-PnPList -Identity $libraryTitle -ErrorAction Stop
} catch {
  New-PnPList -Title $libraryTitle -Template DocumentLibrary -OnQuickLaunch -ErrorAction Stop | Out-Null
  $library = Get-PnPList -Identity $libraryTitle -ErrorAction Stop
}
$libraryRoot = $library.RootFolder.ServerRelativeUrl.TrimEnd("/")
        Write-Host "✅ Document library '$libraryTitle' created" -ForegroundColor Green
        
        # Associate with hub site
        Connect-PnPOnline -Url $adminURL -Interactive -ClientId $clientId
        Add-PnPHubSiteAssociation -Site $siteUrl -HubSite $hubSiteUrl
        Write-Host "🔗 Hub association completed" -ForegroundColor Green

        # Set site permissions
        try {
            Connect-PnPOnline -Url $siteUrl -Interactive -ClientId $clientId

            # Remove Read if it was previously set (optional but clean)
            Grant-WebRoleToUser -UserOrGroup $groupName -RolePref "Edit"

            Write-Host "✅ Edit access granted to '$groupName' on $siteUrl" -ForegroundColor Green
        }
        catch {
            Write-Host "❌ Failed on $siteUrl - $($_.Exception.Message)" -ForegroundColor Red
        }

        # Folder creation
        Connect-PnPOnline -Url $siteUrl -Interactive -ClientId $clientId
        $library = Get-PnPList -Identity $libraryTitle
        $libraryRoot = $library.RootFolder.ServerRelativeUrl

        # Extern gedeeld folders
        Add-PnPFolder -Name "_Extern Gedeeld" -Folder $libraryRoot | Out-Null
        Write-Host "📁 Folder '_Extern Gedeeld' created" -ForegroundColor Gray

        # Permanent folders
        Add-PnPFolder -Name "_Permanent" -Folder $libraryRoot | Out-Null
        Write-Host "📁 Folder '_Permanent' created" -ForegroundColor Gray

        @("Algemeen", "Identificatie-WWFT", "Fiscaal", "Opdrachtbevestiging", "Overeenkomsten", "Personeel") | ForEach-Object {
            Add-PnPFolder -Name $_ -Folder "$libraryRoot/_Permanent" | Out-Null
            Write-Host "📁 Folder '_Permanent/$_' created" -ForegroundColor Gray
        }

        # Year folders
        $startYear = [int]$client.Year
        $currentYear = (Get-Date).Year + 1
        $years = $startYear..$currentYear

        foreach ($year in $years) {
            Add-PnPFolder -Name $year -Folder $libraryRoot | Out-Null
            Write-Host "📁 Folder '$year' created" -ForegroundColor Gray

            @("Administratie-BTW", "Advies", "Audit", "Data analyse", "Fiscaal", "Jaarrekening", "Salaris") | ForEach-Object {
                Add-PnPFolder -Name $_ -Folder "$libraryRoot/$year" | Out-Null
                Write-Host "📁 Folder '$year/$_' created" -ForegroundColor Gray
            }

            @("IB", "VPB", "Overig") | ForEach-Object {
                Add-PnPFolder -Name $_ -Folder "$libraryRoot/$year/Fiscaal" | Out-Null
                Write-Host "📁 Folder '$year/Fiscaal/$_' created" -ForegroundColor Gray
            }
        }

        "$clientNumber,$clientName,Success,Folders and lib created" | Out-File -Append $logPath

        # Set Site Sharing
        Write-Host "📁 Set Site Sharing permissions" -ForegroundColor Yellow
        Write-Host "🔐 Verbinden met Admin: $AdminUrl" -ForegroundColor Cyan
        $adminConn = Connect-PnP-Admin -Url $AdminUrl
        
        Set-PnPTenantSite -Connection $adminConn -Url $siteUrl -SharingCapability $target -ErrorAction Stop
        Write-Host "📁 Site Sharing permissions are set" -ForegroundColor Yellow
    }
    catch {
        $errorMessage = $_.Exception.Message.Replace("`r", "").Replace("`n", "")
        Write-Host "❌ Error processing $clientNumber $errorMessage" -ForegroundColor Red
        "$clientNumber,$clientName,Error,$errorMessage" | Out-File -Append $logPath
    }
}

# -----------------------------------
# 🔹 Phase 3: Set folder permissions
# -----------------------------------

# Paths
"ClientNumber,ClientName,Folder,Group,Role,Status,Message" | Out-File -FilePath $logPath -Encoding UTF8

# SharePoint
$sitesURL = "<Sites URL>"
$clientId = ">ClientID>"

# Load clients
$clients = Import-Csv -Path $csvPath

foreach ($client in $clients) {
    $clientNumber = $client.ClientNumber
    $clientName = $client.ClientName
    $startYear = [int]$client.Year
    $currentYear = (Get-Date).Year + 1

    $siteTitle = "$clientNumber $clientName"
    $libraryName = "$clientNumber $clientName"
    $siteUrl = "$sitesURL$clientNumber"

    Write-Host "`n🔧 Processing site: $siteTitle" -ForegroundColor Cyan

    # Build folders
    $permanentSubfolders = @("Algemeen","Identificatie-WWFT","Fiscaal","Opdrachtbevestiging","Overeenkomsten","Personeel")
    $yearSubfolders = @("Administratie-BTW","Advies","Audit","Data analyse","Fiscaal","Fiscaal/IB","Fiscaal/VPB","Fiscaal/Overig","Jaarrekening","Salaris")
    $allFolders = @("_Permanent")
    $allFolders += "_Extern Gedeeld"
    $allFolders += $permanentSubfolders | ForEach-Object { "_Permanent/$_" }
    foreach ($year in $startYear..$currentYear) {
        $allFolders += "$year"
        $allFolders += $yearSubfolders | ForEach-Object { "$year/$_" }
    }

    try {
        Connect-PnPOnline -Url $siteUrl -Interactive -ClientId $clientId

# After connecting to the site:
$web = Get-PnPWeb
$webRelativeUrl = $web.ServerRelativeUrl.TrimEnd("/")
$library = Get-PnPList -Identity $libraryName
$libraryRoot = $library.RootFolder.ServerRelativeUrl.TrimEnd("/")

foreach ($relativePath in $allFolders) {
    $folderIdentity = "$libraryName/$relativePath"
    $serverRelativePath = "$libraryRoot/$relativePath"

    # Special case: _Extern Gedeeld → Contribute for Clienten
    if ($relativePath -eq "_Extern Gedeeld") {
        $groupName = "Booster - File - Clienten"
        $role = "Contribute"
    }
    elseif ($relativePath -like "*/Audit") {
        $groupName = "Booster - File - Clienten - Auditors"
        $role = "Contribute"
    }
    else {
        $escapedPath = [Regex]::Escape($relativePath)
        $isLeaf = -not ($allFolders -match "^$escapedPath/")
        $groupName = "Booster - File - Clienten"
        $role = if ($isLeaf) { "Contribute" } else { "Read" }
    }

    try {
        Write-Host "`n🔍 Checking folder: $folderIdentity"
        Write-Host "🔗 Server-relative URL: $serverRelativePath"

        try {
            $folder = Get-PnPFolder -Url $serverRelativePath -ErrorAction Stop
            Write-Host "✅ Folder exists: $serverRelativePath"
        }
        catch {
            Write-Host "❌ Folder not found or cannot be accessed: $serverRelativePath" -ForegroundColor Yellow
            "$clientNumber,$clientName,$folderIdentity,$groupName,$role,Failed,Folder not found or inaccessible: $($_.Exception.Message)" | Out-File -Append $logPath
            continue
        }

        Write-Host "🔐 Setting permissions on $serverRelativePath for $groupName as $role"
        # Grant-FolderRoleToUser -ListIdOrTitle $library.Id -ServerRelUrl $serverRelativePath -UserOrGroup $groupName -RolePref $role
        Set-PnPFolderPermission -List $library.Id -Identity $serverRelativePath -ClearExisting -AddRole $role -User $groupName -ErrorAction Stop
        Write-Host "✅ Permissions set on $serverRelativePath for $groupName as $role" -ForegroundColor Green

        "$clientNumber,$clientName,$folderIdentity,$groupName,$role,Success,Permissions set" | Out-File -Append $logPath
    }
    catch {
        Write-Host "⚠️ Skipping or failed: $folderIdentity - $($_.Exception.Message)" -ForegroundColor DarkYellow
        "$clientNumber,$clientName,$folderIdentity,$groupName,$role,Skipped,$($_.Exception.Message)" | Out-File -Append $logPath
    }
}


    }
    catch {
        $err = $_.Exception.Message.Replace("`r","").Replace("`n","")
        Write-Host "❌ Error on site $siteTitle - $err" -ForegroundColor Red
        "$clientNumber,$clientName,,,,$err" | Out-File -Append $logPath
    }
}


Stop-Transcript