The issue should be fixed now, but Microsoft has released a fixed version of the update first to the Windows Insider community of volunteer software testers, before it goes back out to regular consumers for download. So, if you moved your Downloads folder to D:\Downloads but still had a C:\Users\Name\Downloads folder with files inside it, Windows 10's October 2018 Update would remove the original folder and the files inside it.
Microsoft missed the bug despite users filing reports in its Feedback Hub, since the number of total reports of file deletion was too low to trigger a quicker response by its engineers. It happened to "one one-hundredth of one percent of version 1809 installs", he indicated.
The update was initially offered for download last week to early adopters, but Microsoft paused the roll-out and took the update down while it investigated the issues. Data loss is considered to be a serious effect, but the problem wasn't flagged highly for Microsoft because of the small number of affected users, Cable suggested. To make sure to remedy such issues, the Windows Insider team says that it is adding the ability to flag the severity of the feedback that they initiate.
Reports emerged shortly after the release that data loss occurred on some upgraded systems after the upgrade to Windows 10 version 1809.
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Windows on Hold for Now Cable outlined three scenarios where such file loss had occurred.
The new version also received patches for a range of critical remote code execution vulnerabilities, as part of Microsoft's regular monthly Patch Wednesday security updates.
The feature is built-in to the Windows operating system. Microsoft plans to re-release the new OSes after getting testing feedback. The company says the number of customers who got build 1809 was limited.
To help our customers that may be impacted by this issue, Microsoft Support is assisting customers and trying to recover data for users who may have experienced related data loss. So that's a curious absence right there and at many other stores also. For more information, please refer to our Windows 10 update history page (KB article), which we are updating with new information as it is available.
Now, the company's director of program management for Windows servicing and delivery, John Cable, says that the bug has been resolved. Microsoft halted the rollout of version 1809 to investigate the matter, and found a fix.