Microsoft confirmed that they aware about this issue and assured fix to be rolled out soon. Those users who’re wondering what causing the issue, then officials also have answer to this: In short resetting PC bug in Windows 11 and Windows 10 is associated with Files on demand or Files Placeholder feature.

Fix – Resetting PC Doesn’t Delete Personal Data in Windows 11 | Windows 10

Microsoft also suggested affected users to try following temporary solutions to fix the issues: Before resetting your Windows 11/10 PC, you need to logout or Unlink OneDrive. Check the instructions Deactivate, deactivate, or uninstall OneDrive . Alternatively, you can delete the files files in the Windows.old folder after performing factory settings. Here’s how you can force delete files in Windows.old folder Click Search icon and type cmd and when it appears in results launch Command Prompt as administrators. Here, you need to execute this command: rmdir /s /q c:\windows.old\users and hit enter. After that, type cipher /w:c and hit enter. Or, you can wait 10 days as Windows will automatically delete the content in Windows.old folder. Are you affected by issue when Resetting PC Doesn’t Delete Personal Data in Windows 11 and Windows 10. Let us know in the comments.

Fix   Resetting PC Doesn t Delete Personal Data in Windows 11   Windows 10 - 96