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Location of that folder ?? or a snapshot 

System Volume information is not always for system restore point. 

It's in the root of my system drive.

You can use the command vssadmin.exe in an admin command prompt to get info on shadow copies (restore points).  Maybe some are stuck in the system volume folder.

You can use the /? to get help but what you might be looking for is something like this.

vssadmin List Shadows /For=C:

May I ask since when you have been facing this issue? 

First entry is from June 3rd.

Hi,

This listed 13 entries, all with following attributes:

Provider: 'Microsoft Software Shadow Copy provider 1.0'
Type: ApplicationRollback
Attributes: Persistent, No auto release, Differential, Auto recovered

Seems to be an extra entry is made everyday.

Mine shows pretty much the same except for the Type: entry.  Mine shows ClientAccessibleWriters as that entry.

Possibly they were put there by upgrade attempts and have not yet been removed.  If it has been more than about 12 days since an upgrade attempt, you may want to delete them.

If you are not attempting some type of upgrade/install, the every day situation looks strange.

You might want to put the following in a run box and see if you can adjust the size allocated to shadow copies.  I currently have only two on my Win 11 system and my system is enabled for creating restore points.

systempropertiesadvanced

Not installing anything.

And under "System protection" no protection is enabled.

Have you decided to remove the shadow copies?  If they continue, you might check the time when they were created and see if you can tie that time to any known events.