Windows 11 PC Migration Gets Local Option—If You’re Willing to Decrypt Drives and Purge Cloud Backups

Microsoft has quietly introduced a local PC-to-PC transfer feature inside the Windows Backup app, aiming to close the gap between cloud convenience and the heavy lifting of moving large files, settings, and personal folders to a new machine. Rolled out with July’s Patch Tuesday updates and still phasing in across builds, the tool lets users beam data directly over a Wi‑Fi or LAN network — no OneDrive, no external drive, no paid subscription. But what sounds like a friction‑free move comes with a demanding checklist that many early testers have found confusing, and at points, counter‑intuitive.

The feature surfaces as a “Transfer to a new PC” button on the old device and a corresponding option during new‑PC setup. The two devices pair over the local network using device names and a one‑time code, sidestepping cloud upload bandwidth caps and storage limits. Microsoft markets it as a way to copy “all files, settings, and preferences” from an old PC to a new Windows 11 device. In practice, however, the promise is undercut by strict exclusions: no installed third‑party apps, no encrypted drives, no OneDrive files, and no system folders — only personal files and a curated set of Windows preferences make the journey.

What the Transfer Actually Moves — and What Stays Behind

Understanding the scope is critical before you commit to the process.

The line is clear: files and personalization come across; program binaries and encrypted volumes do not. That combination forces every user to plan for app reinstallation and, for many, a temporary decryption step that can take hours on large drives.

The Gatekeeping Quirks: Cloud Backups and Microsoft Accounts

Microsoft has tied the local transfer to a curious prerequisite: your Microsoft account must not contain any existing Windows cloud backup. If a backup exists, the new‑PC setup experience will default to restoring from the cloud and will actively skip the local transfer option. The company’s documentation confirms that the account must be “clean” before the feature appears.

To bypass this, users must visit their Microsoft account’s Devices page, scroll to Cloud synced settings, and click “Clear stored settings.” This deletion is permanent and removes all existing cloud backups for that account. It’s a destructive step that many will find alarming, especially if they have relied on that backup for previous restores.

Additionally, you must disable live backups on the old PC. Open Settings > Accounts > Windows backup and turn off the toggles for “Remember my apps” and “Remember my preferences.” Otherwise, a new cloud backup could be created while you are preparing the transfer, once again hiding the local option.

The requirement to sign in with a Microsoft account also locks out users who prefer local accounts or who avoid linking their device to an online identity. Enterprise environments with managed accounts may face additional policy hurdles that prevent the transfer workflow from appearing at all.

BitLocker: The Default Encryption Barrier

Perhaps the most disruptive hurdle is Windows 11’s growing use of device encryption. Starting with version 24H2, clean installations on many modern devices enable BitLocker‑based device encryption by default. The local transfer feature excludes any drive that is encrypted, and the only official workaround is to completely decrypt the volume before initiating the move.

That process can take a significant amount of time — hours or more, depending on drive size — and leaves data temporarily unprotected during the decryption window. For users with sensitive personal files or corporate data, that exposure is a genuine security concern. Microsoft’s own support page advises users to turn off Device encryption (or BitLocker) via Settings > Privacy & security > Device encryption, and then re‑enable it after the transfer completes.

The friction is already drawing criticism. As one report noted, “It’s almost as if Microsoft designed this feature but really doesn’t want people to use it.” With encryption becoming the default on new PCs, the decryption prerequisite will likely be the single largest barrier to casual adoption.

Step‑by‑Step: Making the Transfer Work

After weeks of early testing and community feedback, a reliable workflow has emerged. Follow these steps in order to avoid the most common pitfalls.

1. Update both PCs
   Ensure the old PC has all latest Windows updates. On the new PC, confirm it is running Windows 11 version 2024 or later. The receiving side is still rolling out; if the option is missing, retry after a few days.

2. Clear existing cloud backups
   Sign into your Microsoft account on the web, go to Devices, and select “Clear stored settings” under Cloud synced settings. This removes any backup that would otherwise block the local transfer flow.

3. Disable Windows Backup sync on the old PC
   Open Settings > Accounts > Windows backup and turn off “Remember my apps” and “Remember my preferences.” This prevents a fresh cloud backup from being created.

4. Decrypt BitLocker drives
   If Device encryption is on, navigate to Settings > Privacy & security > Device encryption, and turn it off. Wait for decryption to finish. For BitLocker‑protected volumes, use the BitLocker control panel to suspend or disable protection.

5. Export an app list with winget (optional but recommended)
   Since installed programs won’t transfer, save yourself hours of manual work. Open a terminal and run:
   winget export -o apps.json
   Copy the JSON file to a USB drive or network location. After the transfer, on the new PC, run:
   winget import -i apps.json --accept-source-agreements --accept-package-agreements
   This batch‑reinstalls the majority of your applications with minimal intervention.

6. Initiate the transfer
   On the old PC, open Windows Backup and click Transfer to a new PC. On the new PC, during setup, connect to the same local network and choose the option to receive data. Enter the device name shown on the old PC, then confirm the pairing code. Select the files and folders you want to copy, respecting storage limits on the new machine if its drive is smaller.

7. Post‑transfer tasks
   Once the migration finishes, sign into OneDrive to sync any cloud‑only files. Run the winget import command to reinstall apps. Re‑enable Device encryption or BitLocker on the new PC, and manually reconfigure any application‑specific settings that didn’t migrate (e.g., license activations, plugin configurations).

Troubleshooting When Things Go Wrong

• Transfer option missing during setup: Confirm your Microsoft account has no stored backups (clear them via the web if necessary) and that the new PC is on the required Windows 11 version. If the option still doesn’t appear, the receiving component may not have reached your device yet; wait a few days and try again.
• Devices won’t discover each other: Both PCs must be on the same subnet — same Wi‑Fi SSID or wired LAN. Temporarily disable VPNs and any restrictive firewall rules. Set the network profile to Private to allow discovery.
• Transfer over Wi‑Fi stalls or is slow: Large transfers can suffer from packet loss or interference. When possible, connect both machines via Gigabit Ethernet for the fastest, most reliable copy.
• Apps still missing after migration: The import command may fail for some packages that have license prompts or require administrative interaction. Run winget import with elevated privileges and manually install any remaining stragglers.

Security, Privacy, and Enterprise Realities

The OTP‑pairing step and local‑only data flow are sensible security choices: your files never traverse the public internet, and you must physically confirm the device pairing. This reduces exposure to interception and man‑in‑the‑middle attacks compared with cloud‑based transfers.

However, the forced decryption of BitLocker‑protected drives introduces a temporary security gap. For anyone handling sensitive data — medical records, financial documents, intellectual property — the window of vulnerability could be unacceptable. Microsoft’s guidance assumes users will decrypt, transfer, and then re‑encrypt in quick succession, but for a home user moving 1 TB of data over Wi‑Fi, that window could stretch to many hours.

Privacy‑conscious users who avoid Microsoft accounts will find the feature entirely unusable, as there is no local‑account path during the guided setup. Enterprises, too, are unlikely to adopt this for fleet migrations: the lack of app migration, the account‑based gating, and the inability to centrally manage the transfer contradict modern IT provisioning practices. The tool appears squarely aimed at consumer and small‑business users, not corporate deployment.

A Tool With Promise, But Not Yet a One‑Click Migration

Microsoft’s local transfer is a genuinely useful addition for the right scenario: a home user with a large photo library, no existing cloud backup, and a willingness to temporarily decrypt their drive. For that person, it eliminates hours of file copying to external drives and avoids OneDrive’s 5 GB free tier limit. The integration into the Windows Backup app and the OTP‑secured pairing feel polished and modern.

But for everyone else, the feature is hobbled by an array of non‑obvious requirements that feel as if they were designed to steer users back toward the cloud. The insistence on a clean Microsoft account, the need to manually disable sync toggles, the permanent deletion of existing backups — none of this is explained during the setup flow itself. Users learn about these steps only by hunting through support documents or forum posts after the transfer option fails to appear.

The exclusion of encrypted drives is the sharpest edge. With device encryption now a default, many brand‑new Windows 11 laptops will arrive with BitLocker already protecting the main drive. Telling a user to decrypt their entire disk before they can move their files is a heavy ask, especially when the alternative — using an external drive or cloud sync — avoids that risk entirely.

Finally, the fact that applications don’t transfer means the tool is only half the migration story. Winget export/import is a powerful companion, but it still requires command‑line familiarity and doesn’t cover non‑winget sources or complex suites that need individual configuration. For now, setting up a new PC demands patience and preparation, no matter which transfer path you choose.

Practical Advice for Your Next PC Refresh

If you’re planning to buy a new Windows 11 device in the coming months, take these steps now:

• Export your app list immediately. A winget JSON takes seconds to generate and could save you a day of setup later.
• Audit your encryption status. If BitLocker is on and you can’t or won’t decrypt, plan to move files via encrypted external storage instead of the local transfer.
• Decide whether to clear your cloud backup. The locally transferred personalization doesn’t include app install lists, so clearing a cloud backup that contains that metadata may not be worth it for you. If you can live without the local transfer, stick with the cloud restore.
• Use a wired network for the move. Gigabit Ethernet will slash transfer time and reduce the window of decryption exposure.

The Bigger Picture: Microsoft’s Balancing Act

The local PC‑to‑PC transfer represents an important step toward the kind of seamless device migration smartphone users have enjoyed for years. The pairing model echoes Nearby Sharing, and the OTP authentication mirrors trusted device flows in other Microsoft services. It’s a sign that Windows is inching closer to a modern, user‑friendly setup experience.

Yet the tool’s constraints also reveal Microsoft’s strategic tension. Cloud backup via OneDrive and MSA roaming locks users into the ecosystem and up‑sells storage subscriptions. A full‑fledged local migration that works without a Microsoft account and carries over applications would directly compete with that cloud revenue model. The company’s careful gating — requiring an account, blocking the option if a backup exists, excluding encrypted volumes — suggests a deliberate attempt to make the local path just usable enough to satisfy critics, but not so frictionless that it cannibalizes the cloud alternative.

Whether Microsoft will refine these rough edges in future updates remains to be seen. For now, the tool is a viable, if labor‑intensive, option for certain migrations. Approach it with a checklist, not as a magic button, and you’ll land on a new PC with your files intact and a to‑do list you can manage.