This feature is in phased rollout
Starting in Summer 2022, Google Drive is automatically replacing files that are located in multiple locations with shortcuts. Previously, it was possible for a file to be located in multiple locations within Google Drive.
With shortcuts, Google Drive will keep the file in one home location, and then replace all additional links to the file with a shortcut.
This change will be happening slowly. Users will be notified when their files will be updated. For more information, see this announcement from Google Support.
Previously, you could include files and folders in multiple locations in My Drive. The introduction of shortcuts simplified file and folder structures and created easy access to items. With shortcuts, it’s now easier for you to find and organize files and folders in multiple Google Drives while keeping the original version in one location. Learn more about finding files and folders using shortcuts from Google Support.
How Files are Replaced
The ultimate goal of the update is to determine one location for your files which will control sharing permission (based on folder inheritance). Google will take into consideration a few factors to prevent disruptions to file access including access, activity, and original file and folder ownership.
This process is fully automated and requires no user action. You cannot opt-out of the change.
The process will replace all but one location of files and folders that are currently in multiple locations. The files and folders will be replaced with shortcuts. For example, if 'File A' is in both 'Folder A' and 'Folder B', the original file will remain in 'Folder A' since that is where it was originally created, and the version in 'Folder B' will be replaced with a shortcut.
On Google Drive's web interface, files and folders that have been converted to shortcuts will have a half circular arrow indicator.

When your files are updated, sharing settings and file and folder ownership will not change. However, creating new shortcuts will not change sharing permissions. We recommend using Google Groups or Shared Drives for managing files with complex sharing requirements.
How Shortcuts Appear in Drive for Desktop
If you use Drive for Desktop app to sync files to your desktop, shortcuts will appear differently.
Windows
Shortcuts files and folders will now have a Shortcuts file type, instead of the original File or Folder file type. If you have your files sorted via file type, you won't see shortcuts grouped with the rest of your normal files.

If you previously pinned a file or folder to the Quick access menu, this link may no longer work. You will need to replace the item in Quick access with the new shortcut.
- Right-click the item in Quick access
- Select Unpin from Quick access
- Locate the new shortcut in Google Drive
- Right-click the item
- Select Pin to Quick access

macOS
Shortcuts files and folders will now have the Alias file type, instead of the original File or Folder file type. If you have your files sorted via file type, you won't see shortcuts grouped with the rest of your normal files.

If you previously pinned a file or folder to the sidebar in Finder, this link may no longer work. You will need to replace the item in Quick access with the new shortcut.
- Right-click the item in the Finder sidebar
- Select Remove from Sidebar
- Locate the new shortcut, then drag and drop the item into the sidebar

Need Additional Help?
For additional assistance, please visit the Google Workspace Knowledge Base for additional articles or select a Related Service to submit a support ticket. You can also contact the IT Help Desk.