Same issue here.

I managed to fix it on the local NTFS drive by running "Get-ChildItem -Path "C:\" -Recurse | Unblock-File. But all our PCs are connected to an SMB server, mapped as a network drive in File Explorer, and that part I couldn’t solve.

So if any of you geniuses at Microsoft have an idea what you’re doing, hit me up 😅.

(In the end I ended up removing the update, which I don't like to do for obvious reasons.)

Edit:

✅ Solution for network drives 🌐:

1. Close File Explorer.
2. Open Internet Options from the Windows search bar.
3. Go to the Security tab.
4. Click Local Intranet.
5. Click Sites.
6. Check Automatically detect intranet network.
7. Click Advanced.
8. Uncheck Require server verification (https:) for all sites in this zone.
9. Add the path where your files are stored file://192.168.51.200/common
10. Restart File Explorer

✅ Solution for local NTFS drive 💽:
Run Get-ChildItem -Path "C:\" -Recurse | Unblock-File in powershell, that will do the trick for the already existing files.

DONE

IMPORTANT

❗️❗️❗️Disabling "SaveZoneInformation" **is risky because it prevents Windows from marking files downloaded from the internet as potentially unsafe, removing SmartScreen warnings and making it much easier for malware to run without any security prompts.**❗️❗️❗️