Build crashes at C# trying to open Recycle Bin file

I share an Unreal Engine (4.26) game with a (non-technical) colleague through Git. Today he received his first code files from me, and to compile it, I had him install the SDKs(windows, .Net, C++ gaming, Visual Studio) and call Generate Visual Studio Project Files. It all generated just fine.

But when the time to start the Engine came, it crashed with this:

EDIT: After emptying the Recycle Bin, the error is the same, but the file different.

ERROR: Unhandled exception: System.UnauthorizedAccessException: Access to the path ‘D:\System Volume Information’ is denied.

Since this looks like a permissions problem, I tried having him run the engine as administrator, tick off all the read-only in Properties->General for Epic Games and UE, and enable developer mode, nothing seems to do it. I don’t really see how much more permissions I can get than that.

Former error:
ERROR: Unhandled exception: System.UnauthorizedAccessException: Access to the path ‘D:$RECYCLE.BIN\S-1-5-18’ is denied.

Full logfile(minus some cleanup on my part):

Log file open, 04/17/21 12:00:08
LogInit: LLM is enabled
LogInit: LLM CsvWriter: off TraceWriter: off
LogInit: Display: Running engine for game: Naptin
LogPlatformFile: Not using cached read wrapper
LogTaskGraph: Started task graph with 5 named threads and 35 total threads with 3 sets of task threads.
LogStats: Stats thread started at 5.907298
LogD3D11RHI: Loaded GFSDK_Aftermath_Lib.x64.dll
LogICUInternationalization: ICU TimeZone Detection - Raw Offset: -5:00, Platform Override: ''
LogPluginManager: Mounting plugin MeshPainting
.....lots of LogPluginManager......
LogPluginManager: Mounting plugin SteamVR
LogXGEController: Cleaning working directory: C:/Users/adpar/AppData/Local/Temp/UnrealXGEWorkingDir/
LogXGEController: Cannot use XGE Controller as Incredibuild is not installed on this machine.
LogInit: Warning: Incompatible or missing module: Naptin
Running D:/.........UNREALENGINEFOLDER/UE_4.26/Engine/Binaries/DotNET/UnrealBuildTool.exe Development Win64 -Project="D:/....UNREAL/Naptin/Naptin/Naptin.uproject" -TargetType=Editor -Progress -NoEngineChanges -NoHotReloadFromIDE
Using 'git status' to determine working set for adaptive non-unity build (D:\....UNREAL\Naptin\Naptin).
Creating makefile for NaptinEditor(no existing makefile)
@progress push 5%
Parsing headers for NaptinEditor
  Running UnrealHeaderTool "D:\....UNREAL\Naptin\Naptin\Naptin.uproject" "D:\....UNREAL\Naptin\Naptin\Intermediate\Build\Win64\NaptinEditor\Development\NaptinEditor.uhtmanifest" -LogCmds="loginit warning, logexit warning, logdatabase error" -Unattended -WarningsAsErrors -abslog="C:\Users\adpar\AppData\Local\UnrealBuildTool\Log_UHT.txt" -installed
Reflection code generated for NaptinEditor in 23.9260389 seconds
@progress pop
ERROR: Unhandled exception: System.UnauthorizedAccessException: Access to the path 'D:\$RECYCLE.BIN\S-1-5-18' is denied.
          at System.IO.__Error.WinIOError(Int32 errorCode, String maybeFullPath)
          at System.IO.FileSystemEnumerableIterator`1.CommonInit()
          at System.IO.FileSystemEnumerableIterator`1..ctor(String path, String originalUserPath, String searchPattern, SearchOption searchOption, SearchResultHandler`1 resultHandler, Boolean checkHost)
          at System.IO.DirectoryInfo.EnumerateFiles()
          at Tools.DotNETCommon.FileFilter.FindMatchesFromDirectory(DirectoryInfo CurrentDirectory, String NamePrefix, Boolean bIgnoreSymlinks, List`1 MatchingFileNames) in D:\Build\++UE4\Sync\Engine\Saved\CsTools\Engine\Source\Programs\DotNETCommon\DotNETUtilities\FileFilter.cs:line 487
          at Tools.DotNETCommon.FileFilter.FindMatchesFromDirectory(DirectoryInfo CurrentDirectory, String NamePrefix, Boolean bIgnoreSymlinks, List`1 MatchingFileNames) in D:\Build\++UE4\Sync\Engine\Saved\CsTools\Engine\Source\Programs\DotNETCommon\DotNETUtilities\FileFilter.cs:line 495
          at Tools.DotNETCommon.FileFilter.FindMatchesFromDirectory(DirectoryInfo CurrentDirectory, String NamePrefix, Boolean bIgnoreSymlinks, List`1 MatchingFileNames) in D:\Build\++UE4\Sync\Engine\Saved\CsTools\Engine\Source\Programs\DotNETCommon\DotNETUtilities\FileFilter.cs:line 495
          at Tools.DotNETCommon.FileFilter.ApplyToDirectory(DirectoryReference DirectoryName, Boolean bIgnoreSymlinks) in D:\Build\++UE4\Sync\Engine\Saved\CsTools\Engine\Source\Programs\DotNETCommon\DotNETUtilities\FileFilter.cs:line 408
          at Tools.DotNETCommon.FilePattern.CreateMapping(HashSet`1 Files, FilePattern& SourcePattern, FilePattern& TargetPattern) in D:\Build\++UE4\Sync\Engine\Saved\CsTools\Engine\Source\Programs\DotNETCommon\DotNETUtilities\FilePattern.cs:line 340
          at UnrealBuildTool.UEBuildBinary.PrepareRuntimeDependencies(List`1 RuntimeDependencies, Dictionary`2 TargetFileToSourceFile, DirectoryReference ExeDir) in D:\Build\++UE4\Sync\Engine\Source\Programs\UnrealBuildTool\Configuration\UEBuildBinary.cs:line 294
          at UnrealBuildTool.UEBuildTarget.Build(BuildConfiguration BuildConfiguration, ISourceFileWorkingSet WorkingSet, Boolean bIsAssemblingBuild, List`1 SpecificFilesToCompile) in D:\Build\++UE4\Sync\Engine\Source\Programs\UnrealBuildTool\Configuration\UEBuildTarget.cs:line 1786
          at UnrealBuildTool.BuildMode.CreateMakefile(BuildConfiguration BuildConfiguration, TargetDescriptor TargetDescriptor, ISourceFileWorkingSet WorkingSet) in D:\Build\++UE4\Sync\Engine\Source\Programs\UnrealBuildTool\Modes\BuildMode.cs:line 615
          at UnrealBuildTool.BuildMode.Build(List`1 TargetDescriptors, BuildConfiguration BuildConfiguration, ISourceFileWorkingSet WorkingSet, BuildOptions Options, FileReference WriteOutdatedActionsFile, Boolean bSkipPreBuildTargets) in D:\Build\++UE4\Sync\Engine\Source\Programs\UnrealBuildTool\Modes\BuildMode.cs:line 257
          at UnrealBuildTool.BuildMode.Execute(CommandLineArguments Arguments) in D:\Build\++UE4\Sync\Engine\Source\Programs\UnrealBuildTool\Modes\BuildMode.cs:line 226
          at UnrealBuildTool.UnrealBuildTool.Main(String[] ArgumentsArray) in D:\Build\++UE4\Sync\Engine\Source\Programs\UnrealBuildTool\UnrealBuildTool.cs:line 550
LogInit: Warning: Still incompatible or missing module: Naptin
LogCore: Engine exit requested (reason: EngineExit() was called)
LogExit: Preparing to exit.
LogExit: Exiting.
Log file closed, 04/17/21 12:02:43

We have tried a few things, like generating again, or copypasting all of our assets to a new project: if we copy the assets, all good, if we copy the code, the same crash.

This happens only on his machine, so I’m kind of at a loss for words. He did not delete any files, the only difference between his machine and mine is that his SDK is more up-to-date by a few weeks.

I’d really appreciate any clue regarding why this file comes up in the build or how to stop it from crashing. The C++ code doesn’t seem to be the issue at all, and he can’t start Unreal Engine anymore.