They’re compound assignment operators, translating (very loosely)
x |= y;
into
x = x | y;
and the same for &. There’s a bit more detail in a few cases regarding an implicit cast, and the target variable is only evaluated once, but that’s basically the gist of it.
In terms of the non-compound operators, & is a bitwise “AND” and | is a bitwise “OR”.
EDIT: In this case you want Folder.Attributes &= ~FileAttributes.System. To understand why:
~FileAttributes.Systemmeans “all attributes exceptSystem” (~is a bitwise-NOT)&means “the result is all the attributes which occur on both sides of the operand”
So it’s basically acting as a mask – only retain those attributes which appear in (“everything except System”). In general:
|=will only ever add bits to the target&=will only ever remove bits from the target