Expand folders in the Navigation Pane of Windows Explorer to open them

I believe you are referring to the "Expand to current folder" command in File Explorer.

This appears to be a widespread problem, affecting many users. The problem first occurred with Windows version 22H2, and the problem remains even with the latest update, Windows version 24H2. The recently monthly updates have not resolved this issue either. Although the February 2025 update is supposed to introduce important fixes to File Explorer, there is no mention on Microsoft's Update website about a fix to the "Expand to current folder" bug.

I only recently purchased a new several months ago and right away I noticed the problem. The "Expand to current folder" command simply doesn't work anymore for any of the quick access items (i.e., Documents, Pictures, Music, etc., and your user folders) in the left navigation pane. As you say, it only works if you click on a quick access item that points to folders on the C:\ drive and other drives. Your only recourse for the time being is to choose the option to "Show all folders", which works, but is rather awkward to use.

Despite users' attempts to report the problem to Microsoft, there has not yet been any acknowledgment from Microsoft about this bug and whether a fix is planned. I can only suggest that users keep reporting this issue to Microsoft.