FSLogix 25.09 Fix: OneDrive Rename Bug on Windows Server 2019

A persistent OneDrive bug tied to FSLogix has left Windows Server 2019 session-host administrators frustrated: files and folders inside OneDrive that live in FSLogix-managed profiles could not be renamed, and the only reliable relief reported by multiple administrators has been upgrading FSLogix to the September 2025 maintenance build (25.09). The defect rendered simple file-management operations unusable in affected sessions, resisted conventional renaming via File Explorer and PowerShell, and — according to multiple community reports — was only mitigated after updating FSLogix or applying user-level workarounds such as re-registering the AAD Broker Plugin.

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Background / Overview​

FSLogix is a profile-container and redirection technology widely used in non‑persistent desktop and session-host environments (RDS, Citrix, Azure Virtual Desktop) to present consistent user profiles via VHD/VHDX (or ODFC) containers. Administrators use it to centralize profiles, preserve user state, and accelerate session host scaling. OneDrive for Business — particularly when used with Known Folder Move (KFM) and Files‑On‑Demand — relies on stable filesystem semantics and timely metadata for operations like renaming. When those semantics are disrupted in a multi‑user, multi‑host environment, user-visible failures can cascade rapidly across a farm.
In mid‑2025 several administrators began reporting a consistent pattern on Windows Server 2019 hosts: creating new folders in OneDrive succeeded, but attempts to rename the new objects immediately failed with a generic error indicating the object could not be found. Attempts to rename the same items using PowerShell or CMD returned the same failure. Those symptoms were concentrated on hosts where the user profile was presented from an FSLogix-managed container; profiles placed locally under C:\Users did not show the problem in identical environments.

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Timeline and key events​

• Early reports of rename failures and related OneDrive/Office activation errors began surfacing in community channels and a German blog reader report in mid‑2025.
• Administrators tested multiple FSLogix versions in affected farms; the error persisted across several builds until community reports indicated resolution after updating to FSLogix 25.09 (published in September 2025). Those confirmations are community‑sourced and anecdotal, but consistent across several independent environments.
• Microsoft Support involvement, as reported by an affected admin, concluded without a vendor remediation: the escalation was closed as “outside the scope of support” for that specific ticket, leaving administrators to rely on community guidance and product updates. This outcome was reported by the reader and discussed in forums. Administrators should treat that report as an operationally important anecdote until vendor-side communications provide fuller detail.

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Symptoms and reproduction​

What administrators and users saw​

• Creating a new folder in OneDrive produced the default name (“New Folder”) but the rename dialog failed; pressing Enter or attempting to rename produced a brief error and reverted the name. Attempts to rename via Explorer, PowerShell, or CMD failed consistently.
• The OneDrive sync engine appeared otherwise functional (files uploaded, KFM ran), but the rename capability for newly created objects inside the FSLogix container context was broken.

How to reproduce (community pattern)​

1. Use a Windows Server 2019 session host with FSLogix profile containers enabled.
2. Sign in with a profile that is stored in an FSLogix container where Known Folder Move has placed Documents/Desktop into OneDrive.
3. Create a new folder in the OneDrive-synced KFM folder.
4. Attempt to rename the folder in Explorer or via PowerShell; the operation fails with a UI error claiming the item cannot be found.

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Scope and affected configurations​

• The issue has been observed primarily on Windows Server 2019 hosts where FSLogix containers are used for user profiles. Profiles that are local (C:\Users) did not show the rename failure in reported tests, indicating a strong correlation with FSLogix-managed profile presentation.
• Reports span FSLogix builds tested in affected environments (community tests referenced 25.02 and 25.06, among others) with the problem persisting until 25.09 in multiple accounts. The successful outcomes after 25.09 are community‑reported rather than documented explicitly in the official release notes.

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Vendor response and documentation status​

Microsoft’s official FSLogix 25.09 release notes list a set of driver, redirection, and profile‑deletion exclusion fixes, but they do not explicitly reference the OneDrive rename symptom or some reported Office activation errors by name. Community confirmations — multiple administrators seeing the issue resolved after installing 25.09 — provide an operational signal that the release changed behavior in a way that removed the rename failure in many environments. Because the release notes omit a specific “OneDrive rename” fix, organizations should treat the community evidence as useful operational intelligence but not as vendor-verifiable proof until Microsoft publishes a knowledge base article or updates the release notes with that symptom.
One operational consequence: some customers who opened support tickets were told the case was outside the support scope for the particular product boundary raised in the ticket, leaving the direct path to resolution unclear for those customers. That makes careful testing and controlled rollouts of candidate fixes even more important.

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Technical analysis — why FSLogix updates could fix OneDrive behavior​

FSLogix intervenes in the profile and file stack in a few critical ways:

• It mounts VHD/VHDX containers and presents a user’s entire profile at login, including token caches, AAD broker caches, and Known Folder redirections.
• It installs file‑system filter drivers and redirection layers that mediate queries, metadata, and rename semantics between the session host and the underlying NTFS or ReFS store.
• OneDrive (and Files‑On‑Demand) rely on consistent metadata, handle semantics, and timely I/O responses for operations like renames and placeholder‑resolution.

A small timing or metadata inconsistency — for example, stale directory cache entries, an incorrect response to a rename query, or a race between OneDrive’s placeholder logic and FSLogix’s mount points — can cause OneDrive to believe the object does not exist after the rename attempt. Changes in FSLogix that adjust driver feature flags, mount timing, cleanup/exclusion rules, or redirection behavior can therefore remove the specific race condition that made renames fail, even if those changes are not described in user-visible release notes. This is a plausible explanation for why a maintenance release could cure the symptom without the release notes naming it.
Two adjunct pieces of evidence from the community strengthen this theory:

• Administrators who combined an FSLogix upgrade with re-registering the Microsoft.AAD.BrokerPlugin package reported better results, suggesting AAD broker and token‑handshake state can interact with the symptom. A commonly used community command is Add-AppxPackage -Register for the AAD Broker plugin; it has to be used with care and tested in a non‑production host first.
• The symptom disappeared when administrators moved users off FSLogix-managed profiles to local profiles (C:\Users)—again pointing to the profile-container layer as the failure domain.

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Practical mitigations and troubleshooting steps​

The following steps represent a pragmatic path for administrators dealing with this problem now. Treat them as operational guidance — test each step in a lab or pilot ring before broad deployment.

• Immediate triage (fast, low-risk)
  • Move one or two affected users to a host where the profile is local (C:\Users) and verify full OneDrive rename functionality. This confirms whether FSLogix is the likely culprit.
  • Re‑register the AAD Broker Plugin on one host as a targeted test: Add-AppxPackage -Register "<PathTo>\Microsoft.AAD.BrokerPlugin...AppxManifest.xml" -DisableDevelopmentMode -ForceApplicationShutdown. Use caution — test on non‑production hosts first. Several admins report positive results when combining this step with an FSLogix update.
• Short‑term operational workaround
  • If a small cohort is heavily affected and cannot wait for an FSLogix update, consider temporarily moving their Known Folders back to local profile locations, or provision those users on hosts with locally stored profiles until a fix is validated. This is disruptive but effective as an emergency measure.
• Recommended permanent approach (pilot → canary → full roll)
  1. Inventory your environment: document your Windows Server 2019 build, FSLogix version, OneDrive client version, Office/Click‑to‑Run channel, and KFM configuration.
  2. Baseline the problem: reproduce the rename failure on a test host and capture FSLogix logs (%ProgramData%\FSLogix\Logs), OneDrive logs (%userprofile%\AppData\Local\Microsoft\OneDrive\logs), and Event Viewer traces.
  3. Apply FSLogix 25.09 to a representative pilot host and repeat the reproduction steps. Monitor for regressions and collect logs.
  4. If the pilot shows resolution, perform a canary rollout across a small set of production hosts, and monitor for several business cycles before full farm deployment.
  5. If the pilot does not resolve the issue, gather artifacts and escalate with Microsoft support (include FSLogix logs, OneDrive logs, and event traces).
• Rollback and contingency
  • Retain installers for the previous FSLogix version and golden images to allow a rapid rollback if the update introduces regressions. FSLogix updates touch the file stack; unanticipated side effects are possible.

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Risks, caveats and compliance considerations​

• The observed fixes for OneDrive rename and Outlook activation errors come mainly from community reports rather than explicit entries in the FSLogix 25.09 release notes. This documentation gap matters for teams that need vendor‑stated fixes for audit trails or change control. Treat the reported improvement as operational evidence, not formal vendor confirmation, until Microsoft documents the symptom or publishes a KB.
• Upgrading FSLogix without piloting risks regressions that could manifest as profile mount failures, increased logon times, or visibility changes for users. Because FSLogix operates at a low level in the file stack, changes can have farm‑wide impact.
• Community scripts and commands (for example, re‑registering system AppX packages) are helpful but should be vetted for security and compatibility in each organization. Do not deploy community fixes blindly to production.

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Recommendations for IT teams​

• Prioritize a short pilot: If you run Windows Server 2019 with FSLogix and have experienced OneDrive rename or Office activation problems, schedule a controlled pilot of FSLogix 25.09 immediately. Follow a documented test plan and capture logs for both successful and failed runs.
• Harden your troubleshooting posture:
  • Automate collection of FSLogix, OneDrive, and Event Viewer logs when reproducing the issue.
  • Record exact OneDrive client and Office build numbers; third‑party KBs and community posts often hinge on precise build alignment.
• Maintain a rollback plan: Keep older FSLogix installers, golden images, and a documented rollback procedure. Test the rollback in an isolated environment before applying updates broadly.
• Engage with the community but keep escalation ready: Community intelligence is valuable and can accelerate mitigation, but for reproducible production issues compile artifacts and open an escalated support case with Microsoft if the pilot does not resolve the problem.

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Final assessment​

The OneDrive rename failure on Windows Server 2019 in FSLogix-managed profiles is a high‑impact, low‑frequency operational bug that disproportionately affects session-hosted environments where profile containers and OneDrive KFM intersect. Community evidence points strongly to FSLogix 25.09 as a practical remedy in many cases, and several administrators report successful resolution after upgrading and, in some cases, re‑registering the AAD broker plugin. However, because the release notes do not explicitly list the symptom, organizations must validate the fix themselves: pilot first, collect logs, and maintain a rollback plan.
If your environment is affected, treat this as a priority‑level operational issue: verify reproducibility, test 25.09 in a controlled ring, and document all findings. That will provide the shortest route to restoring normal OneDrive file operations for your users while preserving auditability and compliance controls.

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Conclusion
This OneDrive + FSLogix interaction is a case study in how low‑level profile management changes can create visible application failures in virtualized Windows environments. The path to resolution is clear: controlled testing of the FSLogix 25.09 maintenance release, disciplined logging and rollback planning, and cautious use of community workarounds where appropriate. Administrators who follow a methodical pilot → canary → roll approach will minimize user disruption while gaining the operational evidence needed to justify a broader update.

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Source: BornCity Windows Server 2019: OneDrive issue related to FSLogix | Born's Tech and Windows World