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If a user redirects a Windows known folder (like Documents or Desktop) into the FileCloud sync root, FileCloud Desktop for Windows resets that redirection back to default when the user logs out.
If the redirection was set up via PowerShell/SHSetKnownFolderPath, this reset fully reverses the change with no side effects.
If the redirection was set up via Windows Explorer:
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Files are not moved back automatically. When you redirect a known folder in Explorer, Explorer moves its contents into the new (sync root) location. When FileCloud Desktop for Windows reverts the redirection, it does not move those files back out, but keeps them on the server to avoid accidental deletion.
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The original folder is recreated, but empty. Explorer deletes the original known-folder directory when you redirect it. When FileCloud Desktop for Windows reverts the change, it recreates that folder (empty) so Windows Explorer doesn't send warnings about a missing folder.