Hey I did that and found the file at the path you gave:
C:\Users\%username%\AppData\Local\VirtualStore\Program Files (x86)\World of Warcraft Classic
I've done two reinstalls since this issue popped up all at different locations. One was in c:program files and the current one is in c:program files (x86).
I deleted the WTF file in the virutal store and it still wouldn't let me log in. Tried twice then got the banned message. So I released my IP and restarted the computer but still says banned.