Microsoft has acknowledged a new Windows bug that may cause some user data to persist after resetting a PC. The issue specifically affects folders using reparsed data that have been synced locally with the OneDrive app for Windows.
“When attempting to reset a Windows device with apps which have folders with reparse data, such as OneDrive or OneDrive for Business, files which have been downloaded or synced locally from OneDrive might not be deleted when selecting the “Remove everything” option. This issue might be encountered when attempting a manual reset initiated within Windows or a remote reset,” the company explained on the Windows Health Dashboard (via Neowin).
The company says that this bug affects various versions of Windows including Windows 11 and Windows 10 version 20H2 and newer. A fix is already in the pipeline, though there’s currently no ETA.
In the meantime, Microsoft recommends signing out or unlinking OneDrive before resetting a Windows PC to prevent any user data to persist. For devices that have already been reset, Microsoft also recommends deleting the “Windows.old” folder using Storage sense in the Settings app