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The files that go into the “Recent” tab are the only ones that are temporarily decrypted to %localappdata%\AxCrypt. These are only files that are “opened” – i.e. not decrypted manually, but opened, viewed while remaining encrypted (or updated if you’ve edited the file). Files that you for example decrypt using the AxCrypt Windows Explorer context menu right click | AxCrypt | Decrypt do not go there, nor are they temporarily or in any other way decrypted to the %localappdata%\AxCrypt subfolders.
The icon will become red for the duration that you are signed in and AxCrypt has a record of any file being decrypted temporarily to %localappdata%\AxCrypt.
If you could please email the text files you find in %localappdata%\AxCrypt to support att axcrypt dott net, we’ll take a look at them and see if we can determine what has happened. To what’s in them, just open them with notepad – they are just regular text files.