Just to emphasize - in XP 32-bit, Avast Free (Program version 17.9.2322 build 17.9.3761.0) INTERFERES WITH COPYING FILES from a source folder on my C:\ drive to any target folder on my C:\ drive.
That is very bad and must be fixed.
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I have a small batch file that I use frequently (several times a day) to backup volatile files, bookmarks, emails etc. and whilst this doesn't copy from C:\ and to sub-folders of C:\, but to my secondary drive. I also copy from another partition (same drive as C:\) to my secondary drive. These would then subsequently be backed up using disk-imaging software.
Yesterday this kept stalling "e:\data" "f:\curbkup\data", not only stalling it completely locked it up, whilst I could use and close other running programs, my batch file and cmd.exe refused to be closed and the computer wouldn't shut down.
I have been using this for absolute years without issue, so I REM (ed) out lines of the batch file to see if I could find the cause. It still kept failing despite this, I also changed the destination folders and it still stalled. So for every test I ended up having to do a hard shutdown.
This morning I continued my quest to resolve this starting off by disabling avast including the Behaviour Shield, but no, that didn't appear to make a difference. I completely redid the batch file and saved under a new file name and this worked.
I enabled the avast shields again and ran the batch file directly not via a shortcut and it worked. I then ran the batch file from my shortcut and no problem. Essentially the batch file was back to what it was again, but I did cull a line of the batch file. I couldn't see why this would have an impact as it had been working for years without issue.
So this may not be the same issue as yours as I had no C:\ source and C:\ destination sub-folders.
Just weird that this would suddenly happen and despite my trying to track it down, today it is now back to normal, with essentially the same batch file commands.