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broken link fixed, cf. https://meta.stackoverflow.com/a/406565/4751173
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Glorfindel
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When repairing, modifying, or uninstalling a product or when installing or uninstalling a patch, if source media is required the package cache is used automatically and most users will never see a prompt. Only if the package cache is missing or incomplete will Visual Studio setup prompt to download (if connected) or locate media as shown in the screenshot below.

Visual Studio 2012 Prompt for Source

Users who have installed from media even get the option to download (if connected). So while very few customers should ever see this dialog, we wanted to make sure the experience was easy.
Even though we will prompt to download packages to the cache if missing, we recommend users do not remove the package cache. Not only is the cached used by many other products that are installed with Burn and may not provide the same download experience, there are scenariosscenarios when Windows Installer may require source that we cannot handle because our code is not running.

Solution/Work-Around:#

#Solution/Work-Around:# IfIf you need to reclaim this space, your safest bet is to avoid "deleting" anything, but to instead, move this folder and all it's files. You can safely do this following the instructions below to any local/live, online, near-line, or offline storage as long as that storage system that can be mounted to a drive letter or any mount point on the NTFS file system. Any of the following will work:

When repairing, modifying, or uninstalling a product or when installing or uninstalling a patch, if source media is required the package cache is used automatically and most users will never see a prompt. Only if the package cache is missing or incomplete will Visual Studio setup prompt to download (if connected) or locate media as shown in the screenshot below.

Visual Studio 2012 Prompt for Source

Users who have installed from media even get the option to download (if connected). So while very few customers should ever see this dialog, we wanted to make sure the experience was easy.
Even though we will prompt to download packages to the cache if missing, we recommend users do not remove the package cache. Not only is the cached used by many other products that are installed with Burn and may not provide the same download experience, there are scenarios when Windows Installer may require source that we cannot handle because our code is not running.

#Solution/Work-Around:# If you need to reclaim this space, your safest bet is to avoid "deleting" anything, but to instead, move this folder and all it's files. You can safely do this following the instructions below to any local/live, online, near-line, or offline storage as long as that storage system that can be mounted to a drive letter or any mount point on the NTFS file system. Any of the following will work:

When repairing, modifying, or uninstalling a product or when installing or uninstalling a patch, if source media is required the package cache is used automatically and most users will never see a prompt. Only if the package cache is missing or incomplete will Visual Studio setup prompt to download (if connected) or locate media as shown in the screenshot below.

Visual Studio 2012 Prompt for Source

Users who have installed from media even get the option to download (if connected). So while very few customers should ever see this dialog, we wanted to make sure the experience was easy.
Even though we will prompt to download packages to the cache if missing, we recommend users do not remove the package cache. Not only is the cached used by many other products that are installed with Burn and may not provide the same download experience, there are scenarios when Windows Installer may require source that we cannot handle because our code is not running.

Solution/Work-Around:#

If you need to reclaim this space, your safest bet is to avoid "deleting" anything, but to instead, move this folder and all it's files. You can safely do this following the instructions below to any local/live, online, near-line, or offline storage as long as that storage system that can be mounted to a drive letter or any mount point on the NTFS file system. Any of the following will work:

broken link fixed
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Glorfindel
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From Microsoft Developer Tools Blogs → HEREHERE

  1. You would move the folder(s) in question to its new location

  2. Create the junction

    • Option 1. (natively): Just issue the built-in Windows Vista / 7 / 8 command and the cmd prompt:

        mklink /J oldpath newpath
      

    NOTE: If you make the newpath absolute, you'll be able to move link without breaking the pointer to the newpath. If you make the newpath relative, you'll be able prevent breaking the link, as long as you move BOTH the link and target TOGETHER and maintain their relative paths.

    • Option 2. (using a tool): Another GREAT alternative is a free handy utility I've been using for years called "Link Shell Extension". LSE is free and you can find it here (or Google for it): http://schinagl.priv.at/nt/hardlinkshellext/hardlinkshellext.htmlhttp://schinagl.priv.at/nt/hardlinkshellext/hardlinkshellext.html

      LSE allows you to create symlinks, hardlinks, junctions, smartcopies, smartclones, smart mirrors, smart moves, splices, multiple sources, and bunch of other stuff I found too confusing to read, frankly. But, it's a brilliant free product that creates a Windows Explorer context menu that allows you right-click on your LINK-TARGET folder then drag it to where you'd like to create the actual link. You can of course rename the link to anything you'd like.

From Microsoft Developer Tools Blogs → HERE

  1. You would move the folder(s) in question to its new location

  2. Create the junction

    • Option 1. (natively): Just issue the built-in Windows Vista / 7 / 8 command and the cmd prompt:

        mklink /J oldpath newpath
      

    NOTE: If you make the newpath absolute, you'll be able to move link without breaking the pointer to the newpath. If you make the newpath relative, you'll be able prevent breaking the link, as long as you move BOTH the link and target TOGETHER and maintain their relative paths.

    • Option 2. (using a tool): Another GREAT alternative is a free handy utility I've been using for years called "Link Shell Extension". LSE is free and you can find it here (or Google for it): http://schinagl.priv.at/nt/hardlinkshellext/hardlinkshellext.html

      LSE allows you to create symlinks, hardlinks, junctions, smartcopies, smartclones, smart mirrors, smart moves, splices, multiple sources, and bunch of other stuff I found too confusing to read, frankly. But, it's a brilliant free product that creates a Windows Explorer context menu that allows you right-click on your LINK-TARGET folder then drag it to where you'd like to create the actual link. You can of course rename the link to anything you'd like.

From Microsoft Developer Tools Blogs → HERE

  1. You would move the folder(s) in question to its new location

  2. Create the junction

    • Option 1. (natively): Just issue the built-in Windows Vista / 7 / 8 command and the cmd prompt:

        mklink /J oldpath newpath
      

    NOTE: If you make the newpath absolute, you'll be able to move link without breaking the pointer to the newpath. If you make the newpath relative, you'll be able prevent breaking the link, as long as you move BOTH the link and target TOGETHER and maintain their relative paths.

    • Option 2. (using a tool): Another GREAT alternative is a free handy utility I've been using for years called "Link Shell Extension". LSE is free and you can find it here (or Google for it): http://schinagl.priv.at/nt/hardlinkshellext/hardlinkshellext.html

      LSE allows you to create symlinks, hardlinks, junctions, smartcopies, smartclones, smart mirrors, smart moves, splices, multiple sources, and bunch of other stuff I found too confusing to read, frankly. But, it's a brilliant free product that creates a Windows Explorer context menu that allows you right-click on your LINK-TARGET folder then drag it to where you'd like to create the actual link. You can of course rename the link to anything you'd like.

putting the quoted part in a blockquote, converting the tags to Markdown syntax
Source Link

UPDATED ANSWERTL;DR: Do NOT delete this folder

(see below for work-aroundworkarounds)

 

#Why Not?There have been conflicting reports about whether the absence of this folder(as a consequence of deleting it) will *actually* and in *all cases* cause issues with the visual studio installation, i.e. during normal operation, during reinstall, patch/upgrade, repair install, or uninstall. However, the recommendation from MICROSOFT is clearly to ***NOT DELETE IT***.

Why Not?

FromThere have been conflicting reports about whether the absence of this folder Microsoft Developer Tools Blogs => HERE

When repairing(as a consequence of deleting it) will actually and in all cases cause issues with the visual studio installation, modifyingi.e. during normal operation, or uninstalling a product or when installing or uninstalling aduring reinstall, patch/upgrade, if source media is required the package cache is used automatically and most users will never see a promptrepair install, or uninstall. Only if However, the package cacherecommendation from MICROSOFT is missing or incomplete will Visual Studio setup promptclearly to download (if connected) or locate media as shown in the screenshot belowNOT DELETE IT.

Visual Studio 2012 Prompt for Source

Users who have installed from media even get the option to downloadFrom (if connected). So while very few customers should ever see this dialog, we wanted to make sure the experience was easy. Even though we will prompt to download packages to the cache if missing, we recommend users do not remove the package cache. Not only is the cached used by many other products that are installed... there are scenarios when Windows Installer may require source that we cannot handle because our code is not running.Microsoft Developer Tools Blogs → HERE

When repairing, modifying, or uninstalling a product or when installing or uninstalling a patch, if source media is required the package cache is used automatically and most users will never see a prompt. Only if the package cache is missing or incomplete will Visual Studio setup prompt to download (if connected) or locate media as shown in the screenshot below.

Visual Studio 2012 Prompt for Source

Users who have installed from media even get the option to download (if connected). So while very few customers should ever see this dialog, we wanted to make sure the experience was easy.
Even though we will prompt to download packages to the cache if missing, we recommend users do not remove the package cache. Not only is the cached used by many other products that are installed with Burn and may not provide the same download experience, there are scenarios when Windows Installer may require source that we cannot handle because our code is not running.

  1. You would move the folder(s) in question to its new location

  2. Create the junction

    • OPTION1 (natively): Just issue the built-in Windows Vista / 7 / 8 command and the cmd prompt:

      Option 1. (natively): Just issue the built-in Windows Vista / 7 / 8 command and the cmd prompt:

      mklink /J oldpath newpath
        mklink /J oldpath newpath
      

    NOTE: If you make the newpathnewpath absolute, you'll be able to move link without breaking the pointer to the newpathnewpath. IfIf you make the newpathnewpath relative, you'll be able prevent breaking the link, as long as you move BOTH the link and target TOGETHER and maintain their relative paths.

    • Option2Option 2. (useusing a tool): Another GREAT alternative is a free handy utility I've been using for years called "Link Shell Extension""Link Shell Extension". LSE is free and you can find it here (or Google for it): http://schinagl.priv.at/nt/hardlinkshellext/hardlinkshellext.html

      LSE allows you to create symlinks, hardlinks, junctions, smartcopies, smartclones, smart mirrors, smart moves, splices, multiple sources, and bunch of other stuff I found totoo confusing to read, frankly. But, it's a brilliant free product that creates a windows explorerWindows Explorer context menu that allows you right-click on your LINK-TARGET folder then drag it to where you'd like to create the actual link. YouYou can of course rename the link to anything you'd like.

UPDATED ANSWER: Do NOT delete this folder

(see below for work-around)

 

#Why Not?There have been conflicting reports about whether the absence of this folder(as a consequence of deleting it) will *actually* and in *all cases* cause issues with the visual studio installation, i.e. during normal operation, during reinstall, patch/upgrade, repair install, or uninstall. However, the recommendation from MICROSOFT is clearly to ***NOT DELETE IT***.

From Microsoft Developer Tools Blogs => HERE

When repairing, modifying, or uninstalling a product or when installing or uninstalling a patch, if source media is required the package cache is used automatically and most users will never see a prompt. Only if the package cache is missing or incomplete will Visual Studio setup prompt to download (if connected) or locate media as shown in the screenshot below.

Visual Studio 2012 Prompt for Source

Users who have installed from media even get the option to download (if connected). So while very few customers should ever see this dialog, we wanted to make sure the experience was easy. Even though we will prompt to download packages to the cache if missing, we recommend users do not remove the package cache. Not only is the cached used by many other products that are installed... there are scenarios when Windows Installer may require source that we cannot handle because our code is not running.

  1. You would move the folder(s) in question to its new location

  2. Create the junction

    • OPTION1 (natively): Just issue the built-in Windows Vista / 7 / 8 command and the cmd prompt: mklink /J oldpath newpath

    NOTE: If you make the newpath absolute, you'll be able to move link without breaking the pointer to the newpath. If you make the newpath relative, you'll be able prevent breaking the link, as long as you move BOTH the link and target TOGETHER and maintain their relative paths.

    • Option2 (use a tool): Another GREAT alternative is a free handy utility I've been using for years called "Link Shell Extension". LSE is free and you can find it here (or Google for it): http://schinagl.priv.at/nt/hardlinkshellext/hardlinkshellext.html

      LSE allows you to create symlinks, hardlinks, junctions, smartcopies, smartclones, smart mirrors, smart moves, splices, multiple sources, and bunch of other stuff I found to confusing to read, frankly. But, it's a brilliant free product that creates a windows explorer context menu that allows you right-click on your LINK-TARGET folder then drag it to where you'd like to create the actual link. You can of course rename the link to anything you'd like.

TL;DR: Do NOT delete this folder

(see below for workarounds)

Why Not?

There have been conflicting reports about whether the absence of this folder (as a consequence of deleting it) will actually and in all cases cause issues with the visual studio installation, i.e. during normal operation, during reinstall, patch/upgrade, repair install, or uninstall. However, the recommendation from MICROSOFT is clearly to NOT DELETE IT.

From Microsoft Developer Tools Blogs → HERE

When repairing, modifying, or uninstalling a product or when installing or uninstalling a patch, if source media is required the package cache is used automatically and most users will never see a prompt. Only if the package cache is missing or incomplete will Visual Studio setup prompt to download (if connected) or locate media as shown in the screenshot below.

Visual Studio 2012 Prompt for Source

Users who have installed from media even get the option to download (if connected). So while very few customers should ever see this dialog, we wanted to make sure the experience was easy.
Even though we will prompt to download packages to the cache if missing, we recommend users do not remove the package cache. Not only is the cached used by many other products that are installed with Burn and may not provide the same download experience, there are scenarios when Windows Installer may require source that we cannot handle because our code is not running.

  1. You would move the folder(s) in question to its new location

  2. Create the junction

    • Option 1. (natively): Just issue the built-in Windows Vista / 7 / 8 command and the cmd prompt:

        mklink /J oldpath newpath
      

    NOTE: If you make the newpath absolute, you'll be able to move link without breaking the pointer to the newpath. If you make the newpath relative, you'll be able prevent breaking the link, as long as you move BOTH the link and target TOGETHER and maintain their relative paths.

    • Option 2. (using a tool): Another GREAT alternative is a free handy utility I've been using for years called "Link Shell Extension". LSE is free and you can find it here (or Google for it): http://schinagl.priv.at/nt/hardlinkshellext/hardlinkshellext.html

      LSE allows you to create symlinks, hardlinks, junctions, smartcopies, smartclones, smart mirrors, smart moves, splices, multiple sources, and bunch of other stuff I found too confusing to read, frankly. But, it's a brilliant free product that creates a Windows Explorer context menu that allows you right-click on your LINK-TARGET folder then drag it to where you'd like to create the actual link. You can of course rename the link to anything you'd like.

Added details and link to definitive recommendation from Microsoft to NOT DELETE folder
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Flak DiNenno
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Added some more explanation to how/why. Addressed offline storage
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Flak DiNenno
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Flak DiNenno
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