I provide contractors to clients onsite. They are there two days, with their own laptops, using Word.

Recently, a contractor had an issue where after completing the two days onsite, she was editing and suddenly half the work suddenly disappeared from the file. She looked to find it, but when she saw the autosave was the same, she wisely chose to immediately contact MS Help. The tech took over her laptop and tried to find a file with the entire work product... with no luck. He confirmed she had AutoSave on and it was set frequently enough. The only explanation the tech had was he/she saw MS had pushed an update at the same time as she saved the document. Somehow, that did something weird. No matter, half the work product is gone forever.

GOING FORWARD! I'm considering new AutoSave best practices, rather than simply accepting the options provided/suggested in Word.

Currently, I provide my team with their working document via OneDrive. They move it to their local drive, but of course, the default of AutoSave is also their local drive, C:\Users\NAME_\AppData\Roaming\Microsoft\Word\. Would it be beneficial if the person worked in the cloud with the AutoSave local?

I've got zero experience with OneNote or Teams. I have no idea if there would be an option available with either of those. I mention OneNote because I often have several of my team at the same site, simultaneously, but on separate assignments. From what I know, OneNote wouldn't provide benefit for the job itself, but would there be something there that might prevent this weird anomaly from reoccurring? I wouldn't think so, but I'm trying to think outside of the box on this.