I had this crazy problem whenever I renamed a folder, no matter what drive, I would get and error like in the picture but when I clicked "Try Again", it would rename the folder with no problem.
Here is a registry fix that after you run it, all is good again. No need to restart.
Yea, that's one of the latest updates related to Library folders. If, like me, you disable the libraries, gets you every time, well this is #2 time! As soon as I see it I run a little reg file, probably the same as in the link.