The Windows10Upgrade folder located on the C:\ or the system drive is used by Windows 10 Upgrade Assistant. When you update Windows 10 using this too, the Windows 10 image ESD file is downloaded to this folder.
If Windows upgrade process went through successfully and the system is working fine, you can safely remove this folder.
To delete Windows10Upgrade folder, simply uninstall the Windows 10 Upgrade Assistant tool.
Open Windows Settings (WinKey + i), Apps and Features.
Alternately, open “Programs and Features” (appwiz.cpl) from the classic Control Panel.
Scroll down and right-click on Windows 10 Upgrade Assistant and select Uninstall
When this has been uninstalled successfully the C:\windows10upgrade folder will be removed automatically.
Note: Using Disk Cleanup is another option to remove this folder. For more information, refer article How to Delete Windows.old Using Disk Cleanup or Storage Settings.
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About the author
Ramesh Srinivasan founded Winhelponline.com back in 2005. He is passionate about Microsoft technologies and he has been a Microsoft Most Valuable Professional (MVP) for 10 consecutive years from 2003 to 2012.