Creating, renaming, or deleting a folder on a network share fails after upgrade to Windows 10 Anniversary Update

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Symptoms

Users may encounter on-screen error 0x8007003B when they try to create or rename shared folders that they access through a UNC path. This issue occurs after users upgrade previously working Windows 10-based computers to the Anniversary Update version of Windows 10.

The Microsoft Development team can verify this problem on Windows 10 version 1607 clients when the following conditions are true:

The server is running Windows Server 2012 R2 or later.
You specified the no-cache option on the share.
You configured the Windows Search indexer to index the local path on the server.
On the RS1 client, you use File Explorer to create, rename, or delete a folder.

In this scenario, other users encounter error 0x80004005 on their first attempt to delete folders that reside on a remote network share. Upon a retry, the user can successfully delete the folders. The version of the computer hosting the files can be any supported version of Windows or Windows Server.

More Information

In this scenario, File Explorer hangs for 30 seconds and then displays the following error message:

An unexpected error is keeping you from renaming the folder [...] Error 0x8007003B: An unexpected network error occurred.

After the user dismisses the error, they can create or rename folders without further problems.

Deleting folders initially fails with the following error:

0x80004005: Unknown error

Any file transfers that are running in the background pause until the error dialog box times out after 30 seconds.

Additionally, this issue may affect applications. For example, Outlook displays the following error if this problem occurs using a PST on the network share:

{Delayed Write Failed}
Windows was unable to save all the data for the file '...'. The data has been lost. This error may be caused by a failure of your computer hardware or network connection. Please try to save this file elsewhere.

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Cause

The problem occurs if an administrator marked the folder for indexing by the Windows Search service on the server. The Windows Search role is not installed by default on Windows Server, and its indexing path does not include shared data files by default when installed.

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Workaround

This problem occurs when an administrator enables the Windows Search Service on the computer hosting the files and marks the folders that are being created, renamed, or deleted as indexed locations. To work around this issue, do one of the following:

Remove the Windows Search Service.
Stop and disable the Windows Search Service.
Remove the indexes that specified the shared folders.

Note There have been reports of service updates triggering an auto-start of the Windows Search Service when it has been disabled before the update is run.

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