I can almost almost understand the logic behind not backing up OneDrive/Dropbox. I think it's bad logic but I can understand where it's coming from.

Not backing up .git folders however is completely unacceptable.

I have hundreds of small projects where I use git track of history locally with no remote at all. The intention is never to push it anywhere. I don't like to say these sorts of things, and I don't say it lightly when I say someone should be fired over this decision.