Folder shows as synced in Nextcloud Windows Client, but files are missing on disk

Nextcloud version: 20.0.4
Operating system and version: Ubuntu 20.04
Client OS: Windows 10 Pro (20H2)

The issue you are facing:
Folder shows as synced in client, but files are not present on disk.
I unchecked the folder for sync and rechecked it so it can redownload.
Files started appearing, but as soon as it was done everything vanished again.
This only happens to one specific folder.
I had this problem before, even reinstalled the client, but it’s still happening.

Is this the first time you’ve seen this error? (Y/N): N

Steps to replicate it:

  1. Select Folder to sync in Nextcloud Client
  2. Wait until Sync is done
  3. Check if files are present on disk