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When you rename a directory in Windows, the operating system updates the paths of all subfiles and subfolders within that directory automatically. This is because the path of each file or folder is essentially a string that includes the names of all parent directories. When a parent directory's name changes, Windows updates the path strings for all items within that directory to reflect the new name.

Here's a simplified explanation of the process:

1. Directory Structure: Each file and folder has a path that includes the names of all parent directories. For example, if you have a file located at `C:\OldFolder\SubFolder\File.txt`, the path includes `OldFolder` and `SubFolder`.

2. Renaming the Directory: When you rename `OldFolder` to `NewFolder`, Windows updates the path of `SubFolder` and all its contents to reflect this change. So, the new path for the file becomes `C:\NewFolder\SubFolder\File.txt`.

3. Path Update Mechanism: The operating system handles this update automatically by modifying the path strings stored in the file system. This ensures that all references to the files and folders within the renamed directory remain accurate.

This automatic update helps maintain the integrity of file paths and ensures that applications and shortcuts pointing to these files and folders continue to work correctly.

Is there anything else you'd like to know about how Windows manages files and directories?