Microsoft Issues Emergency Windows Updates to Resolve Cloud PC Access and Shutdown Failures

Microsoft releases out-of-band updates addressing credential prompt failures in Cloud PC sessions and shutdown/hibernation issues affecting Windows 11 devices with Secure Launch.

Microsoft has deployed emergency out-of-band (OOB) updates for Windows 10, Windows 11, and Windows Server systems to resolve two critical issues introduced by January's Patch Tuesday updates. These unscheduled patches address problems impacting remote desktop functionality and system shutdown processes.

Cloud PC Access Failure

Organizations reported credential prompt failures in remote connection applications after installing January 2026 security updates. This prevented access to Microsoft 365 Cloud PC sessions, Azure Virtual Desktop, and Windows 365 services via the Windows App on affected client devices.

Microsoft confirmed the issue specifically impacts:

Windows App on specific Windows builds
Azure Virtual Desktop connections
Windows 365 Cloud PC sessions

The glitch caused sign-in failures during remote desktop initiation, disrupting business operations relying on cloud-based Windows environments.

Shutdown and Hibernation Block

A separate issue affected Windows 11 version 23H2 systems with Secure Launch enabled. After installing the January updates, these devices became unable to shut down or enter hibernation mode. Instead of powering off, affected PCs automatically restarted.

Secure Launch—a virtualization-based security feature protecting against firmware-level threats during startup—triggered the conflict. Microsoft suggested a temporary workaround using the command prompt: shutdown /s /t 0.

Resolution and Deployment

Microsoft released manual OOB updates for all impacted versions:

Windows Version	KB Number	Fixes Applied
Windows Server 2025	KB5077793	Cloud PC access
Windows Server 2022	KB5077800	Cloud PC access
Windows Server 2019	KB5077795	Cloud PC access
Windows 11 25H2/24H2	KB5077744	Cloud PC access
Windows 11 23H2	KB5077797	Cloud PC access + Secure Launch shutdown
Windows 10	KB5077796	Cloud PC access

These updates are exclusively available via the Microsoft Update Catalog and require manual installation. Enterprise administrators unable to deploy immediate patches can implement Known Issue Rollbacks (KIR) through Group Policy:

Navigate to: Computer Configuration > Administrative Templates
Apply specialized KIR policies matching affected systems
Detailed deployment guidance available in Microsoft's KIR documentation

For unaffected systems, Microsoft recommends waiting for these fixes to be incorporated into February's Patch Tuesday updates. Administrators should prioritize testing and deployment for devices experiencing these specific issues.