Renaming or deleting a folder on a network share fails with 0x8007003b or 0x80004005 error

When you try to create or rename shared folders that are accessed via a UNC path, you encounter a 0x8007003B error. This issue occurs after you upgrade a Windows 10-based computer to the Anniversary Update version of Windows 10.

The Microsoft Development team has reproduced this problem on Windows 10 version 1607 clients when the server is either Windows 10 RS1 build 1607 or Windows Server 2012 R2 and when the following conditions are true:

• The share was created with the no-cache option enabled.
• The indexer is configured to index the local path (for example, on the server).
• From the RS1 client, File Explorer is used to create, rename, or delete a folder.

Additionally, you may encounter error 0x80004005 on your first attempt to delete folders that reside on a remote network share. However, you can successfully delete the folder during a retry. 

To reproduce this problem, follow these steps:

1. In File Explorer, access a shared folder on a remote computer.
2. Create a new folder, or rename an existing folder.
3. File Explorer hangs for 30 seconds and then returns the following error:
   
   
   An unexpected error is keeping you from renaming the folder [...] Error 0x8007003B: An unexpected network error occurred.
4. After you dismiss the error, the filter can be created or renamed.
5. Deleting folders initially fails with "0x80004005: Unknown error."
6. Any file transfers running in the background are stopped until the error dialog box times out (after 30 seconds). 
7. Applications may also be affected. For example, Outlook displays the following error if this problem occurs using a PSD on the network share.
   

   Language

   Error

   German

   ID 139: {Fehler beim verzögerten Schreibvorgang} Nicht alle Daten für die Datei "\ToWa\Outlook\~xxxx.pst.tmp" konnten gespeichert werden. Daten gingen verloren. Mögliche Ursache könnten Netzwerkkonnektivitätsprobleme sein. Versuchen Sie, die Datei woanders zu speichern. ID 26: Anwendungspopup: Windows - Fehler beim verzögerten Schreibvorgang: Exception Processing Message 0xc000a080 Parameters 0x7ff9103b1d28 0x7ff9103b1d28 0x7ff9103b1d28 0x7ff9103b1d28