Hi Jason Derulo,
The behavior you're observing—automatic creation of empty folders named WINDOWS\system within the Active Directory HomeFolder path—is unusual but may be linked to legacy or background processes initiated by system services or third-party applications.
In many environments, folder structures like WINDOWS\system are created by older scripts, roaming profile configurations, or redirected folder policies that attempt to replicate system paths. Since the folder owner is the user and the location is the HomeFolder, it's possible that a login script, scheduled task, or application is triggering this silently.
We recommend:
Reviewing any Group Policy Objects (GPOs) related to folder redirection or profile management.
Checking for logon scripts or third-party agents that may be writing to the HomeFolder.
Using Process Monitor or Audit Object Access to trace folder creation events.
You can also refer to Microsoft’s guidance on automated folder creation in AD environments for best practices.
Let us know if you’d like help analyzing your environment further.
Best regards,
Quinnie Quoc.