This happened to me a couple of days ago and some of my co-workers had the same problems:
OneDrive for Business Error "Incompatible Office products are installed on your machine."
"Sorry, we can't perform this action. Incompatible Office products are installed on your machine. If you have an administrator, please contact them for help."
Side effects include:
So after some searching I found some threads over on social.technet that helped me solve this problem. As it turns out the problem comes from mixing Click-2-Run (C2R or streaming) Office installations and MSI/EXE based installations. For me, I had Office 2013 installed from the C2R offered on Office 365 and a normal install of Visio 2013.
The solution that worked for me:
Now everything is working fine again. I can sync, work with Word and Outlook and use my Visio again.
(repost from my weblog at: http://stefvanhooijdonk.nl/2015/06/onedrive-for-business-sync-problems/)