Hello Glen,
If you enable this policy setting, when an administrator moves the file share hosting redirected folders and updates the target path of the redirected folders in Group Policy, the cached content is simply renamed in the local Offline Files cache without any delays or potential data loss for the user.
If the users' files are in use or if the full file state is not preserved in the move, users might experience the poor performance as the files are copied over the network, synchronization conflicts generated by Offline Files, or even data loss.
\To Enable optimized moves of redirected folders, do follow the below link,
https://learn.microsoft.com/en-us/windows-server/storage/folder-redirection/enable-optimized-moving
Hope this answers all your queries, if not please do repost back.
If an Answer is helpful, please click "Accept Answer" and upvote it : )
Regards,