- Microsoft's January update is causing some Cloud PC connections to fail
- Two in-house teams are working together on a fix "in the coming days"
- The build already fixed one issue relating to Azure Virtual Desktop
Microsoft has confirmed that a recent Windows update could be blocking some users' access to Microsoft 365 Cloud PCs. A temporary workaround is in place, but the company is yet to formally release a true fix.
The issue started around 7pm UTC on January 13 (per Bleeping Computer), with users noting sign-in failures and intermittent access problems.
Microsoft blamed the fault on OS Build 26100.7623 (KB5074109), but says the Azure Virtual Desktop and Windows Update teams are working together on a solution.
Microsoft recognizes Cloud PC error
Affected devices include Windows 11 25H2, 24H2 and 23H2; Windows 10 22H2 and 21H2; and Windows 10 Enterprise LTSC 2019 and 2016.
"After installing the January 2026 Windows security update (KB5074109), credential prompt failures occurred during Remote Desktop connections using the Windows App on Windows client devices, impacting Azure Virtual Desktop and Windows 365," a status update reads.
For now, users are being advised to use the Windows App Web Client (windows.cloud.microsoft) or the Remote Desktop client to connect to Azure Virtual Desktop.
"We are actively working on a resolution and plan to release an out-of-band (OOB) update in the coming days," the company promised.
This is the bigger of the two known issues related to the latest Windows build – a missing password icon on the lock screen was also reported. It also fixes previously known issues, such as reduced battery performance from an active NPU during device idle and even RemoteApp connection failures in Azure Virtual Desktop environments.
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