For those that are interested:
After literally over a year of this being broken, I have found a solution:
Yup, switch the app to one that is actively supported. Also, OneDrive shared folders work without a hitch, even in the free version!
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Came here to say that I too am in the same situation; I have shared the .KDBX file with my wife through my personal OneDrive; she has Edit access to both the file and the folder. On her iPhone, she can use KyPass can navigate to the folder, can even 'select' the file when browsing for a folder but t...