Microsoft is working on a resolution to an issue where a reset to Windows 10 or 11 device "with apps which have folders with reparse data, such as OneDrive or OneDrive for Business, files which have been downloaded or synced locally from OneDrive might not be deleted when selecting the “Remove everything” option. "

This is on Windows 11, version 21H2; Windows 10, version 21H2; Windows 10, version 21H1; Windows 10, version 20H2

[docs.microsoft.com...]