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There are a couple of more things that you could try, but because you’ve mentioned that you can encrypt files in your Documents folder I think I know what’s going on.
It’s likely that, before you came on here asking for help, you inadvertently allocated the wrong user the relevant privileges (yes, it’s possible even on a single-user system).
To save me reinventing the wheel try following these excellent instructions for ‘testfile.txt’.
If that works, great! If not, there’s one more thing that you could try… so if you’re still having difficulties post back on here and I’ll provide additional instructions.
As you’ll appreciate Windows permissions are made to protect the user. Most of the time there’s no reason for users to be tampering with files in their root directory so the operating system does its best to protect users from accidentally deleting/damaging critical files.