Has anyone managed to replace a paper based filing system with SharePoint since hybrid working became 'the norm'?

Our welfare division has historically stored all applications and paperwork relating to applications for assistance in a paper file, stored in filing cabinets. When COVID struck we started using SharePoint and all new applications were scanned and saved in a folder in SharePoint.

The issue now is around 2 years of paper needs to be dealt with, users don't want to file anything, preferring instead to work from scans/electronic copies of things. One issue with that we've encountered is a user re-synched their laptop and it resulted in files and folders that had been moved/deleted, suddenly started appear and users started saving files in multiple locations.

The other issue is what do we then do with the 1,000+ paper files? As much as they don't want to file the paper documents, no one wants to scan anything either.

Any advice, suggestions, tips, etc., very gratefully accepted.