On ChromeOS if you set downloads to Google Drive in the admin console as a user setting and also have Remove local user data set as a device policy, the files app does not work. You open up the files app and there is no Google Drive displayed. Any attempt to download a file fails. If you set the device to not erase local user data and restart the files app works normally. If you set user can pick where downloads go as a user setting, then restart and the files app works.

These two policies when both set break the files app.