I'm not sure that was the only way for it to happen. I don't have sources, only the anecdote of a friend that got his install ruined and had to reformat. I don't know what he did, but I'm 100% sure he wasn't doing any folder redirection
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How would Windows deleting his personal files ruin his installation and why would a re-format help in that case?
But maybe you're referring to another bug.
I think it didn't just deleted his personal files; it corrupted the installation itself. It might be another bug. I'm not sure though.
Searching around for some sort of source, I found this article[1], which says "...some of my readers told me their hard drives were corrupted and thus were unable to roll back the update." Of course this may be hearsay and false information in times of panic, so I take the statement with a grain of salt.
[1]https://www.forbes.com/sites/jasonevangelho/2018/10/06/micro...
A corrupted installation requires a new install, but not a reformat.