Microsoft: Windows 11 and 10 may leave sensitive data intact when you reset your PC

If you are selling your PC and did a Reset Windows procedure, double-check the drive contents. Microsoft has confirmed a factory reset issue in Windows 11 and Windows 10. It that causes OneDrive files saved to stay on the hard drive after the reset, even when it looks successfully completed.

The issue is confirmed for Windows 11 version 21H2 and Windows 10 versions 21H2, 21H1, and 20H2.

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.

So, the issue is related to the "file placeholders" feature, or Files on-Demand.

So, if you have downloaded some of the file placeholders to view the file locally, it may remain on the drive after the reset process completes.

Prior to issuing a fix, Microsoft recommends using one of the following workarounds (any will do).

• Sign out of your OneDrive account or unlink OneDrive before resetting your Windows device. Detailed instructions can be found at this link.
• If you have already reset Windows settings, then simply delete the Windows.old folder. The best way is to use the "Storage Sense" feature in the "Settings" app.

Even if you have never used OneDrive on your device, check out the contents of the Windows.old folder (if present) before selling your device. It may include something you don't want to expose to the new owner.

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