When setting up a new Windows PC with a Microsoft account, users may find their data files relocated to OneDrive, which can lead to confusion. Upon creating a user account, standard folders (Desktop, Documents, Downloads, Pictures, Music, and Videos) are generated on the system drive. If users choose to back up files during the setup process, new versions of these folders are created within the OneDrive directory, and their locations are reset to point to OneDrive. This means files originally stored locally are now found in OneDrive folders. Users with Microsoft 365 subscriptions have 1 TB of storage, while free accounts have only 5 GB, which can quickly fill up. To manage file storage, users can subscribe to Microsoft 365, disable OneDrive folder backup, or adopt a hybrid approach by backing up local folders while keeping older files separate.