User Profile name changes from User Name to “My Documents” or “Documents”

Solution 1: Manually Delete Desktop.ini file

Deleting the Desktop.ini file from the root of the Profile on the User Store causes the folder to correctly appear as the username and not My Documents.

Solution 2: Configure the Desktop.ini file to automatically delete via Group Policy.

Go to:Group Policy -> User Configuration -> Preferences -> Windows Settings -> Ini Files

Create a new Ini File entry, with the following settings:

Action: Delete

File Path: %userprofile%Documentsdesktop.ini

Section Name: .ShellClassInfo

Property Name: LocalizedResourceName

Ensure that you enable Run in logged-on user’s context under the Common tab.

This will remove the offending line from the user’s desktop.ini folder, fixing the folder display name behavior, and leaving everything else intact, including any other user-set folder view customizations, etc.