TL;DR
Microsoft's January 13, 2026 security update is causing credential prompt failures when using the Windows App to connect to Azure Virtual Desktop and Windows 365. Microsoft is investigating, offering temporary workarounds and planning an out-of-band fix in the coming days.
What happened
On January 13 Microsoft shipped a security update that, according to the company, can prevent credential prompts from working when users try to connect to Azure Virtual Desktop and Windows 365 through the Windows App on client devices. The problem manifests as immediate authentication failures when initiating Remote Desktop connections from the Windows App; some users report seeing an "Unable to Authenticate" error at connect. Reports indicate the issue affects a broad range of installations, from Windows 10 Enterprise LTSC 2016 through Windows 11 25H2, and Windows Server releases from 2019 to 2025. Microsoft says teams for Azure Virtual Desktop and Windows Update are jointly investigating and debugging. As temporary measures, Microsoft recommends uninstalling the update (with the security trade-off), switching to the Remote Desktop Client, or using the Windows App web client. The company said it plans to release an out-of-band update within days and users have reported a Known Issue Rollback is available though it has not been documented on Microsoft's Release Health dashboard.
Why it matters
- Breaks authentication for Azure Virtual Desktop and Windows 365 connections when using the Windows App, disrupting remote desktop access.
- Affects a wide span of client and server Windows versions, increasing potential impact across enterprises.
- Workarounds require either reverting a security update or switching clients, forcing a trade-off between security and access.
- Organizations that migrated users to the Windows App may face operational friction and extra support burden.
Key facts
- Faulty update: Microsoft released the problematic security patch on January 13, 2026.
- Primary symptom: credential prompt failures during Remote Desktop connections initiated from the Windows App.
- Affected products: Azure Virtual Desktop and Windows 365 when accessed via the Windows App.
- Impacted OS range: Windows 10 Enterprise LTSC 2016 up through Windows 11 25H2; Windows Server 2019–2025 also reported affected.
- User reports include immediate 'Unable to Authenticate' errors when clicking Connect in the Windows App.
- Workarounds: uninstall the update (removes security fixes), use the Remote Desktop Client, or use the Windows App web client.
- Microsoft response: investigation ongoing with coordination between Azure Virtual Desktop and Windows Update teams.
- Planned fix: Microsoft said it will issue an out-of-band (OOB) update in the coming days.
- Known Issue Rollback: reportedly available to reverse the change but not yet publicized on Microsoft's Release Health dashboard.
What to watch next
- Release of the out-of-band update Microsoft has promised; timing and scope of the fix as published by Microsoft.
- Whether Microsoft adds the Known Issue Rollback details to its Release Health dashboard and guidance for admins.
- not confirmed in the source: broader telemetry about how many users and organizations the issue has affected.
Quick glossary
- Windows App: Microsoft's unified application that provides access to Windows services such as Windows 365, Azure Virtual Desktop and Remote Desktop.
- Azure Virtual Desktop (AVD): A Microsoft service that delivers virtualized Windows desktops and apps from Azure.
- Windows 365: A cloud service that streams a Windows desktop environment to users from Microsoft's cloud.
- Out-of-band (OOB) update: A software update released outside the normal update schedule to address urgent issues or bugs.
- Known Issue Rollback (KIR): A mechanism Microsoft can use to reverse a recent update or change that causes problems.
Reader FAQ
Which update caused the problem?
The January 13, 2026 security update is identified as the cause.
Which systems are affected?
Reportedly affected: Windows 10 Enterprise LTSC 2016 through Windows 11 25H2, and Windows Server 2019–2025.
How can I connect to AVD or Windows 365 now?
Microsoft recommends uninstalling the update (reduces security), using the Remote Desktop Client, or using the Windows App web client.
When will Microsoft fix this?
Microsoft said it plans to release an out-of-band update in the coming days.
Is a rollback available?
Reports say a Known Issue Rollback is available to reverse the change, but Microsoft has not yet posted details on its Release Health dashboard.

OSES Windows App forgets how to log in with first security update of the year January patch trips up Azure Virtual Desktop and Windows 365 authentication Richard Speed Thu 15 Jan 2026 //…
Sources
- Windows App forgets how to log in with first security update of the year
- Microsoft: Windows 365 update blocks access to Cloud PC …
- Latest Patch Tuesday updates break Remote Desktop for …
- Unable to access Microsoft Cloud PC? This could be why
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