Messing with DFS issues isn’t fun. Your issue is explained in KB961655.
To exclude folders from DFS replication, you can do the following:
1. In your DFS root, right click and click on properties.
2. In the Replication tab, click on Edit.
3. Type the name of a file or subfolder you want to exclude from replication.
4. Click Add to add the folder to the exclusion list, and then click OK.