The title of the post won’t exactly be a source of excitement for the iDevice users looking to upgrade their firmware to iOS 4.3 does it ? According to 9 to 5 Mac, iOS 4.3 has a serious bug which makes its presence felt by deleting folders and restoring the default homescreen layout.

Here’s how the bug comes into action:

When you go to update your applications through the App Store update tool, you are prompted to put in your password to confirm. In iOS 4.3, when you click the cancel button on the password input popup, your homescreen layout will often revert to Apple’s default layout, and you will lose all of your folders.

Let’s hope for every iDevice user’s sake that Apple kills this bug once and for all. For more iPhone, iPod, iPad and other Apple related stuff, follow us on Twitter, Facebook and subscribe to our RSS Feed.