An odd issue. WE have laptops that use offline files and DFS for their offline files.
When we go to sync the offline files for any users, we will get an access denied error to the path. \\mydomain.local\site1. The permissions for this folder are correct if accessing through the D:\Site 1, as the users can read write etc.
Permissions have "Users" read permissions, and domain users are a part of the Users group
I created a test DFS-N and R, then added Authenticated Users to the DFS path \\mydomain\Testsite. The user now gets no errors when syncing offline files.