I made the change about a year ago on two macs on the Dropbox Beta program, and it has worked fine for me. But not for everyone.
The change was driven by Apple no longer supporting the Dropbox and Onedrive extensions in 12.3, requiring use of Apple’s fileproviderd extension instead. More info here.
One of the strings attached is that the Dropbox folder has to be in the CloudStorage location and cannot be moved to a custom location. OneDrive has a workaround for this but Dropbox not yet. There was a Tidbits thread about this here.