I normally only have Windows OS and installed programs on my C drive and all data on a D drive.
But for this mini PC, I'm only going to use it for security purposes so the 500GB SSD will be fine for me. I'll store a minimal amount of data in the standard Windows folders in the C partition, on this mini PC only.
Sounds like a reasonable plan. When I’m travelling, I also save a small numbers of Pictures and Documents to those default folders on laptops. Back home, I transfer them to shared drives on my main computers, and these are accessible to all the other users.
Both my installations of Windows 11 (Home 64) are upgrades from Windows 10 and have the the full complement of User Folders. I don’t use them, except for incidental use mentioned above. There’s nothing special about those folders, but I am reluctant to delete them. I never use MS Cloud, so I collapse this folder view.
I doubt that a “Check for Updates” would detect a missing folder and offer to fix that.
Back in the early days, there were no User Folders at all, then came “My Documents”, presumably to help those who were unable to create their own folders.