Latest Patch Tuesday updates break Remote Desktop for some Windows users

Microsoft released Patch Tuesday updates for Windows 11 and Windows 10 Extended Security Updates (ESUs) devices. These updates brought numerous fixes and enhancements for both operating systems, but it seems like they may have introduced at least one bug in the process too.

In an update on its Windows Release Health dashboard, Microsoft has acknowledged an issue impacting many Windows 11 and Windows Server customers. Essentially, users who install the January 2026 update (KB5074109) on affected devices will experience "credential prompt failures" when establishing Remote Desktop connections with Windows 365 and Azure Virtual Desktop (AVD) devices through the Windows App.

The exact scope of this issue is currently unknown, with Microsoft noting that it impacts specific Windows builds. An investigation and debugging process is currently ongoing, conducted jointly by the AVD and Windows Update team.

In the meantime, the Redmond tech giant has offered a workaround to mitigate the issue. This involves utilizing either of the following connectivity options:

• Use the Remote Desktop client for Windows to connect to Azure Virtual Desktop here
• ​Connect using the Windows App Web Client at windows.cloud.microsoft

Impacted platforms include Windows 11 version 25H2 and 24H2, along with Windows Server 2025, 2022, and 2019. Although this bug impacts only a subset of customers, it is worth noting that these are most likely enterprise users, who experience direct loss in productivity and an indirect loss in potential revenue due to issues like these. As such, it'll be interesting to see the turnaround time for a concrete patch.

The change log for Windows 11's latest Patch Tuesday is very curious, too. Although it seemingly fixes RemoteApp connectivity issues in AVD environments, it seems like it may have introduced new problems alongside this patch. That said, it is not yet known if there is any correlation between these two matters.