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@isyssdav You're not supposed to do anything with the file. Sims 3 recreates or overwrites this file every time you open the launcher, and OneDrive is probably telling you it replaced the old with the new or deleted the old. You can avoid this notification by telling OneDrive not to tell you every time it deletes a file. But deleting the file yourself won't help—the game will just keep creating new versions.
If you don't want OneDrive syncing your files, that's a different matter. Let me know if you'd like help with that process.