Hi Adam,
Thank you for the post.
When you receive "Do you want to move all of the files from the old
location to the new location.....etc" during the restore process, please
click No. Then you will restore the Picture folder successfully. If you
click Yes, it will try to move all contents in your drive D including the
System Volume Information folder which cannot be moved to C:\Users\<User
Account>\Pictures. Therefore, you will encounter this error.
Please take your time trying the above suggestion and let me know the
result at your earliest convenience. If anything is unclear or there are
any questions about the steps, please do not hesitate to let me know. I
will be glad to help.
Sincerely,
Tim Quan
Microsoft Online Community Support
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