Irrespective of the file location (as the file(s) can be located locally on your system or remotely on a file hosting service like OneDrive), this equally affects the locally and remotely stored files. Some people have reported that they get this error message while saving a Word file. One such common error associated with MS word is- A file error has occurred.
Just like other components of the MS Office suite, it has minor bugs and glitches that need to be treated immediately. It is merely a word processor developed by Microsoft but has been the most sought-after application among all professionals. MS Word, for sure, is the most used application out of the whole MS Office suite.
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