I do not want any of my Axcrypt files in OneDrive (‘the Cloud’). I only want my axcrypt files in an encrypted folder on my hard drive.
No files are uploaded to the cloud unless you upload them.
The Cloud Storage Awareness is there for people who choose to store their files there.
Unless you choose to store your files in the cloud (by using your cloud provider, e.g. Dropbox, OneDrive) then the files will only be stored on your hard drive.