Microsoft warns of new Windows 11 and 10 reset issues that can't delete files

Microsoft updated its Release Health Advisory earlier today to notify users of a new issue it has discovered on various Windows platforms, including Windows 11 version 21H2; Windows 10 , version 21H2; Windows 10, version 21H1; and Windows 10, version 20H2.
The issue is related to resetting Windows, where the locally synced reparse data (if present) is not deleted because the included files and folders continue even after the so-called successful reset session exist. The company notes:
When trying to reset a Windows device using an app that contains a reparsed data folder, such as OneDrive or OneDrive for Business, selecting the "Delete everything" option may not work. Files that have been downloaded or synced locally from OneDrive will be deleted. You may face this issue when trying to reset manually or remotely on Windows.
Microsoft says the issue does not appear to affect "cloud only" files, so files that have been downloaded or opened locally may not be deleted when selecting the reset your PC option
Microsoft also provides some workarounds:
- You can prevent this issue by logging out or unlinking OneDrive before resetting your Windows device. For instructions, see the "Unlink OneDrive" section in Turn off, disable, or uninstall OneDrive.
- Follow the steps in KB5012334 - Deleting the Windows.old folder using Storage Sense in the Settings app to mitigate this issue on a reset device.
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