In the recent June 2026 Security Update for Windows 11 and Windows 10, Microsoft has made a noteworthy adjustment to how folder customizations are managed. This update introduces a security hardening measure that may lead some users to perceive it as a problematic update. Specifically, the update prevents custom folder icons and localized folder names from appearing if they are derived from a “desktop.ini” file sourced from an untrusted origin.
Your folders aren’t broken
Initially, users might mistake this change for a bug. A folder that once showcased a custom icon could revert to the standard yellow folder, and localized folder names might revert to their original titles. Despite no alterations made by the user or changes in application settings, Microsoft clarifies that this behavior is intentional. To maintain folder customizations, organizations are encouraged to add trusted internal sources to the “Trusted Sites” list. This can be accomplished through Control Panel > Network and Internet > Internet Options, selecting the “Security” tab, and adding the source in the “Sites” list.
For businesses that require broader compatibility, enabling the “Allow the use of remote paths in file shortcut icons” policy via the Group Policy Editor can restore previous functionality. However, Microsoft cautions that this action may diminish protection against potentially harmful remote content. This policy can be found under Computer Configuration > Administrative Templates > Windows Components > File Explorer.
Additionally, users have the option to remove the Mark-of-the-Web tag from trusted “desktop.ini” files using PowerShell, thereby allowing the operating system to process the customization once more. To remove the tag, one can open PowerShell (admin) and execute the following commands:
- Unblock-File “C:folderpathdesktop.ini” for a single file.
- Get-ChildItem “C:folderpath” -Recurse -Filter desktop.ini -Force | Unblock-File for all “desktop.ini” files in a folder.
While this change may appear minor on the surface, it signifies a broader trend within the operating system. Features that once emphasized flexibility are now being scrutinized through a security-focused lens, even if it results in certain aspects of the operating system appearing less familiar.
Windows Central’s Take
This strategic move by Microsoft, though potentially confusing for some users initially, is a step in the right direction. When folder icons revert to the default yellow, users may instinctively believe that a Windows Update has caused a malfunction. However, in this instance, Microsoft is prioritizing security over customization.
Over the years, the company has gradually tightened controls around older features that were designed for a different era of the internet. Technologies that once operated under an assumption of trust are now being reevaluated, as they can be exploited to make content appear more legitimate than it truly is. While custom folder icons and names may seem innocuous, they can also be manipulated to mislead less experienced users.
For the majority, this change will likely have minimal impact beyond the occasional missing custom icon. Organizations and enthusiasts who depend on these customizations will need to navigate a few additional steps to restore them. Nonetheless, the preference for enhancing security over convenience is a commendable approach.
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