To be able to download .url documents in Modern View
1.Unable to download ".url" files in Modern View.
2.Classic View is functionality is available.
Add a link in a document library
I was able to duplicate the issue in my test environment. Switching back and forth between the classic view and modern view is not an efficient way to work.
This was working before but no longer seems to be. Was there a recent update to SharePoint's modern UI view that broke the download capability for .url files?