In a blog post, Microsoft's John Cable, Director of Program Management, Windows Servicing and Delivery confirmed that the bug that caused the removal of files on the certain system has been addressed and Windows 10 October 2018 Update is once again available to the Insiders.
Implementation of code to remove empty duplicate known folders automatically during upgrade. You create "D:\documents" and change the location of the files known folder from the original "old" location c:\users\username\documents to D:\documents.
You can install the relevant Windows 10 cumulative update on your machines through Settings Update and Security Windows Update Check for updates.
Security updates to Internet Explorer, Windows Media Player, Microsoft Graphics Component, Windows Peripherals, Windows Shell, Windows Kernel, Windows Datacenter Networking, Windows Storage and Filesystems, Microsoft Edge, Microsoft Scripting Engine, Windows Linux, and the Microsoft JET Database Engine.
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The user configured one or more of their Known Folders (Desktop, Documents, Pictures, Screenshots, Videos, Camera Roll, etc.) to be redirected (KFR) to another folder (device drive, external drive or a OneDrive folder).
We have fully investigated these issues and developed solutions that resolve all three of these scenarios, so the "original" old folder location and its contents remain intact.During this process the system prompts the user and asks if they would like to move the files to the new location. Windows Insiders can get their hands on the updated release starting today, and Microsoft says it will "carefully study the results, feedback, and diagnostic data" from Insiders before continuing the public rollout. Going forward, the company has added a new feature to the Windows Insider Feedback Hub, through which users can flag issues by their impact and severity.
If you did experience data loss, Microsoft Support advises you call +1-800-MICROSOFT for help. "We expect this will allow us to better monitor the most impactful issues even when feedback volume is low".