The file or directory is corrupted and unreadable - Almost every application on system

Glad to hear it. That's why I mentioned System restore in the middle of my suggestions because it's a way to get back before an Update messed it up.

If it happens again do the same but next time immediately install Hide Updates Tool from here and check for Updates to hide the problem Update before it reinstalls:

http://download.microsoft.com/download/f/2/2/f2...

Let me know if there's anything else.

If not then you can mark the post which helped most as the Answer, to help others. A rating is also appreciated.

Hey Greg,

Thanks for your time and your reply. Well I actually was pretty lucky that Windows makes restore points with important windows updates, so I restored my PC to 6 days ago and things seem to run pretty well and like before the incident so fortunately I didn't need to reset my PC.

I appreciate your help.

Hi Afshin. I'm Greg, an installation specialist, 9 year Windows MVP and Independent Advisor, here to help you.

I would do the Reset, saving files if you must but it would be better due to the infection if you chose the deep clean, and rely on your file backup since trying to save files may reimport the infection.

To do the reset see this illustrated tutorial:

https://www.zdnet.com/article/windows-10-tip-re...

If necessary to access the Repair Mode to Reset, or if it fails to do the Clean Install, you can create Windows 10 installation media on another PC by installing the Media Creation Tool and following the steps given on it's download page here: http://windows.microsoft.com/en-us/windows-10/m.... If using another PC to create the media uncheck the box for Recommended Settings and choose carefully your licensed version and bit rate (normally 64 bit).

Insert media, boot it by powering up PC while pressing the BIOS Boot Menu Key: https://www.sysnative.com/forums/hardware-tutor...

Choose the boot device as a UEFI device if offered. If the media won't boot you may need to enter BIOS/UEFI Setup (pressing key given in chart in link above) to turn off Fast Boot or Fast Startup first.

After it loads, on second screen, choose Repair Your Computer, then Advanced Troubleshooting to try System Restore to see if it will go back before the infection hit, or go back to Troubleshoot Options to Reset.

If those all fail then use the same media to Clean Install following the illustrated steps in this link which compile the best possible Clean Install of Windows which will stay that way as long as you stick with the tools and methods given, has zero reported problems, and is better than any amount of money could buy: http://answers.microsoft.com/en-us/windows/wiki...

Make sure during the booted install to follow the illustrated steps to delete all partitions down to Unallocated Space to get it cleanest, then click Next to let it auto-create the needed partitions, format them and begin install - this makes it foolproof.

You will get and keep the best possible install to the exact extent you stick with the steps, tools and methods in the linked tutorial. It's a better install than any amount of money could buy and a great learning experience that will make you the master of your PC because you will learn everything that works best and how to apply it with your own hands.

I hope this helps. Feel free to ask back any questions and let us know how it goes. I will keep working with you until it's resolved.