Microsoft confirms Windows 11 January 2026 Update issues, releases fix for at least two bugs

Peer Networks UK Windows Latest Microsoft confirms Windows 11 January 2026 Update issues, releases fix for at least two bugs

Microsoft has confirmed that the Windows 11 January 2026 Update is causing at least three major issues, including a bug that prevents ‘Shut down’ from working on older PCs running version 23H2 with a special feature enabled. That issue is a rare case, but the other two problems (Remote desktop login failure and Outlook freezing) are widespread.

On January 13, Microsoft released the following Windows Updates as part of January 2026 Patch Tuesday:

  • Windows Server 2025 (KB5073379)
  • Windows Server 2023 (KB5073450)
  • Windows 11 25H2 (KB5074109)
  • Windows 11 23H2 (KB5073455)
  • Windows 10 ESU (KB5073724)

Unfortunately, January 2026 Patch Tuesday updates ended up causing more problems, and Microsoft has stepped in with fixes.

Microsoft acknowledges three issues, rolls out fixes for at least two bugs in the January 2026 Update

There are several other officially confirmed issues in Windows 11 January 2026 Update that need our attention, and we’ve the details.

Microsoft has officially admitted to at least three problems so far:

  • A bug where Remote Desktop Connections fail (fixed today).
  • A bug where Windows 11 23H2 would not shut down (fixed today).
  • A bug that crashes Outlook Classic (not fixed).

1. Microsoft broke Remote Desktop connections from the “Windows App” in the January 2026 update

After installing Windows 11 KB5074109 (25H2) and other updates, some users started reporting that Remote Desktop connections from the “Windows App” fail during sign-in. This happens when you click Connect, but the credential prompt flow breaks immediately, and you get an authentication failure.

Technically, the problem happens before a session is created, so your data is not affected, and it appears to be an issue with the Windows App, which is responsible for kicking off the RDP connection. After KB5074109, the Windows App can’t complete the credential prompt, and the connection is rejected.

In a statement to Windows Latest, Microsoft acknowledged the issue and confirmed it as credential prompt failures during Remote Desktop connections affecting the Windows App.

Today’s out-of-band update addresses the problem.

2. Windows 11 23H2 Shut down bug in January 2026 Update

After installing Windows 11 KB5073455, some PCs that have System Guard Secure Launch enabled can’t complete a normal shutdown or hibernation. You can click Shut down or Hibernate, and Windows begins the power transition, but instead of entering the expected power state,

This issue only affects Windows 11 23H2, which is no longer supported for consumers, so only enterprises will run into it.

Today’s out-of-band update addresses the problem.

Microsoft shipped emergency updates for all affected Windows 11 versions on January 17

  • KB5077744: This out-of-band update is for Windows 11 25H2/24H2, and it patches the failure of Remote Desktop connections. You can download it from Microsoft Update Catalog.
  • KB5077797: This is for Windows 11 23H2, and it patches a bug where the PC does not shut down properly. You can download it from Microsoft Update Catalog.
  • Windows Server 2025 (KB5077793) and Server 2022 (KB5077800) patch Remote Desktop failure. You can download it from Microsoft Update Catalog.
  • KB5077796: This fixes remote desktop login errors in Windows 11 ESU and Enterprise LTSC 2021. You can download it from Microsoft Update Catalog.

Microsoft also confirmed a third bug where Outlook crashes when you use POP accounts, but it’s not getting a fix today.

There are at least three unacknowledged issues that remain unpatched. After installing Windows 11 KB5074109 (25H2/24H2), Windows Latest observed the following problems:

  • A black screen appears for some seconds or minutes before the cursor appears, and the desktop starts loading.
  • The desktop background is reset to black, and you need to set up the wallpaper or Spotlight again.
  • File Explorer’s desktop.ini feature does not work, which means you can no longer set a custom name for the folder using desktop.ini.

Microsoft hasn’t acknowledged the three issues above, and Windows Latest was the first to spot them. I’ve put together a rundown of everything going wrong with KB5074109 in our exclusive report.

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