I have been going through my small business updating test PC's using the ISO, making sure to click the "keep all my files" setting. On the 5th PC, the contents of the Documents folder were deleted, while the rest of the user profile (Desktop, AppData), etc remained.
The descriptions of the problem reported are accurate. The customer dissatisfaction is definitely justified here. It's by far the worst Windows update bug I've ever encountered, and I'm a long time user from the MS-DOS days. The local Documents folder should not be corrupted by the upgrade process.
I'm running backups on every Win10 machine now, since I am fearful of this 1809 update.