If you choose to install Windows on the same drive where an existing installation is already present, the setup program creates a folder named Windows.old in the root of the drive. This folder is used to store a full backup of the previously installed OS, including the boot manager and installed apps. This is very handy if you plan to uninstall the currently installed Windows version and return to the previously installed release. It can also be handy if you forgot to transfer some files or settings to the new installation. However, if you are already finished with the migration, then Windows.old just wastes your disk space for no reason. Here is how you can delete it and why it is better to use the built-in OS tools.
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