Symptoms:
After installing the January 2026 security update (KB5074109), released on January 13, 2026, credential prompt failures occurred during Remote Desktop connections using the Windows App on Windows client devices, impacting Azure Virtual Desktop and Windows 365. The issue affects Windows App on specific Windows builds, causing sign-in failures.
Workaround:
This issue is addressed in KB5077744.
The update is only available on Microsoft Update Catalog to be downloaded.
The issue has been identified and is regarding the Microsoft incident with the January 2026 relased security update KB5074109
We are currently investigating this issue.
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