Microsoft acknowledges a new Windows 11 & Windows 10 issue related to device reset

Microsoft has acknowledged a new Windows 11 issue which is listed at the official Windows 11 page. The issue is related to resetting of PCs and persistence of OneDrive or OneDrive for Business files even after using the “Remove everything” option.

Coming to details now, Microsoft has described a new Windows 11 issue with apps which have folders with reparse data, such as OneDrive or OneDrive for Business. Files related to these apps which have been downloaded or synced locally from OneDrive might not be deleted when selecting the “Remove everything” option. OneDrive files which are “cloud only” or have not been downloaded or opened on the device are not affected and will not persist, as the files are not downloaded or synced locally.

Microsoft has offered mitigation steps as a temporary workaround for this issue that you can read below. The company is working on a resolution that will be part of an upcoming update.

Files might persist after resetting a Windows device
Status	Originating update	History
Confirmed	N/A	Last updated: 2022-02-24, 18:53 PT Opened: 2022-02-24, 17:28 PT
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. Remote resets might be initiated from Mobile Device Management (MDM) or other management applications, such as Microsoft Intune or third-party tools. OneDrive files which are “cloud only” or have not been downloaded or opened on the device are not affected and will not persist, as the files are not downloaded or synced locally. Note: Some device manufacturers and some documentation might call the feature to reset your device, “Push Button Reset”, “PBR”, “Reset This PC”, “Reset PC”, or “Fresh Start”. Workaround: To mitigate this issue, you can do the following: This issue can be prevented by signing out or unlinking OneDrive before resetting your Windows device. For instructions, see the “Unlink OneDrive” section in, Turn off, disable, or uninstall OneDrive. This issue can be mitigated on devices that have already been reset by following the steps in KB5012334—Delete the Windows.old folder using Storage sense in the Settings app. Next steps: We are working on a resolution for an upcoming release and will provide more information when it is available. Affected platforms: Client: Windows 11, version 21H2; Windows 10, version 21H2; Windows 10, version 21H1; Windows 10, version 20H2