Microsoft admits that Windows 10/11 cannot completely wipe data with reset function

Windows 10 and Windows 11 all provide a reset function, which not only restores the entire system to its original state but also automatically deletes all data. Therefore, Microsoft has also mentioned that if users are ready to sell their computers, they can use the reset function to delete all data before selling to ensure privacy. However, some netizens found that this function does not actually clean up all data, because some data will be saved in the Windows.old folder and will not be deleted. Only need to use some tools to read data from the folder, if the user saves private data, it may be obtained by malicious people.

After being reported by the media, Microsoft did not officially issue a response to the matter, but it has added instructions on the Windows 10 and Windows 11 health status pages. Microsoft writes:
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”.
This issue mainly affects apps such as OneDrive and OneDrive for Business, where downloaded and synced folders are not automatically deleted. In addition to the reset function built into the system, some manufacturers also provide functions such as reset button, reset this PC, restart by calling this function. These functions are affected by this problem and cannot completely clear all data. Microsoft will release a cumulative update to fix the problem in the future to solve potential security risks.

Microsoft recommends the user migrate this bug by following the steps: