OneDrive not selectable when uploading/sharing Xbox captures

I find that the upload to OneDrive function does not work properly in a lot of cases. To work around it I instead upload the capture to Xbox Live first and then I share it to OneDrive (same method as sharing through messages or to a feed, instead select
OneDrive as the shared destination). After I have confirmed the capture was properly "shared" (uploaded) to OneDrive, I delete it from Xbox Live and my Xbox.

Not exactly, the most user friendly work around, but it seems to do the trick.

I think you need to install the OneDrive app and then you can use it how you are describing.

Use OneDrive on Xbox One

Looking to view your photos and videos on the big screen? If you have an Xbox One, you can easily bring your content to your television. Additionally, gamers
can now easily upload recorded gameplay to OneDrive for easy access.

1. 
   Begin by navigating to the Store tab on your Xbox One.
   
2. 
   Select the Apps tile from the available list.
   
3. 
   Next, locate and select the OneDrive app. It's represented by a picture of white clouds on a blue background.
   
4. 
   Install the OneDrive app by selecting the Get it FREE button.
   
5. 
   Once installed, view and open OneDrive from your Xbox App list.
   

You can use OneDrive. You get 5GB of storage for free.

In the capture settings on the console, you can set it so that captures are automatically uploaded to OneDrive if you like. You can also manually upload multiple captures to OneDrive at once via the Captures app. Also, you can upload an individual capture to OneDrive via the Share menu.

Once uploaded, screenshots will appear in the Pictures\Xbox Screenshots folder inside your OneDrive folder, and videos will appear in Videos\Xbox Game DVR.

You can use the Upload Studio app on the Xbox to upload your captures to OneDrive. From OneDrive you are able to download your captures for sharing on your social media pages if you wish to do so.

The only way I know of actually moving a capture is to send it to your OneDrive. Press the menu button with the capture highlighted and select "share" then select "OneDrive". And then delete the capture if you don't want it to take up space in your Game
DVR.

I don't believe there is any other way to store your captures on your Xbox One without them taking up space on the cloud, as that is how they are uploaded. I hope I'm wrong though!