A recent Windows change affects how the system handles folder customizations from locations considered untrusted. desktop.ini files, long used to change folder icons and displayed names, may now be ignored when they carry external-origin markers or come from higher-risk paths.
In practice, users may see the change as a visual bug: customized folders can revert to default icons. According to technical coverage, however, the behavior is intentional and part of a security hardening measure.
The reasoning is straightforward: visual elements can be abused to mislead users. By preventing downloaded or untrusted files from altering folder appearance, Microsoft reduces an old spoofing surface. It is a tradeoff that favors predictability and protection over some customization flexibility.