You have configured a "Create Folder" action to create a folder within your users' network home drive location at logon.
However you find that if this specific folder is deleted, the folder is not successfully re-created at next logon by the policy action.
We have seen this specific scenario being caused where Offline Files is enabled on a Windows 7 client.
The root cause is due to the actual local cache being referenced rather than the actual share location.
Once the file has been deleted on the remote network share in this scenario, the client is still referencing the cache rather than the remote share.
So for instance, Environment Manager would not create the folder as it "believes" that the folder already exists.
You would see similar results outside of Environment Manager. For instance if checking for this folder existence via a vbs script, this would return true even though it doesnt actually exist anymore.
This issue can be recitified in Windows 7 by Enabling Transparent Caching.
This technology increases integrity of the offline cache to ensure server and client are up to date.
Easiest way to deploy is via Group Policy as per the following MS article: