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FolderIco installs as a shell extension. It modifies the desktop.ini file within the targeted folder to point to a specific icon resource. This method is standard for Windows folder customization and does not require the software to be running in the background constantly. Once a folder icon is changed, the change remains even if the software is uninstalled (provided the icon resource file remains on the system).

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: Color-coding folders for priority or project type. FolderIco installs as a shell extension