Windows is designed to be convenient, and convenience means remembering. Recent files, connected devices, opened folders, watched videos and visited sites all leave records on the PC. A privacy cleanup is about deciding which of those records you actually want to keep.
When Windows deletes a file it usually removes the reference, not the content. Until the space is reused, the data can often be reconstructed. That is why a privacy cleanup also covers free space and the file table. If you need one specific file gone, use secure deletion instead.
No. Browsers keep caches, site storage and download lists, and Windows keeps its own records outside the browser.
It overwrites the parts of the drive that still hold fragments of deleted files, so recovery software can no longer read them.
Follow your employer's policy first. On a machine you own and share with family, clearing recent files and browsing traces is the most useful step.
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