I'm not a microsoft tech, but given what you described I would assume Windows 11 is going to try to install again as now it has the amount of free disc space it needs to install.
We'll see what someone else says, but I'll bet you are going to be in the same position I'm in. Pausing until I give in and let it install.
I don't not believe you actually delete the whole folder. Only the contents. (This was your other question you asked). I have read, though, that folks who did that found themselves once again with Windows 11 downloading and simply reproducing itself in the software distribution folder.