I do not have the option : always make files available offline.
Upon further research, the problem lies with the service not being able to start:
Windows could not start the offline files service on local computer
Does anyone know how to fix it? O/S is Windows 7 professional. 64 bit
I opened a ticket with Microsoft, but got a tech who has absolutely no knowledge of offline folders and wasted the last 24 hours trying to get it working. Absolutely no improvements whatsoever.