This setting does not remove or turn off the folder redirection feature if it is turned on for the user by another Group Policy setting. When you do not configure any folder redirection settings, the default setting for folder redirection folders, such as the My Documents folder, is No Administrative policy specified. This problem occurs when you turn on loopback processing with Replace mode in Group Policy, but you do not configure any folder redirection settings for that policy. You do not notice this problem when users have a Group Policy setting applied for folder redirection, they have loopback processing turned on at the same time, and that loopback processing is being turned on for the first time. You notice this problem only when a user already has a Group Policy setting for folder redirection, and you try to turn on loopback processing on his or her computer. All the settings that are configured by the loopback policy take effect except the folder redirection settings. When you turn on loopback processing in Group Policy, you may notice that folder redirection settings are being applied from the Group Policy settings that are deployed to the user's computer. You turn on loopback processing in Group Policy, but the folder redirection settings are still applied from the Group Policy settings that are deployed to the user's computer Symptoms

Enable loopback download