Remote Desktop Authentication Failure (Cloud PC)
Status: Fixed via OOB Patch | Affected: Windows 11 25H2, 24H2, Server 2025
The Problem: Post-January 2026 update, RDP connections to Cloud PCs fail authentication despite correct credentials. Microsoft released emergency server-side fix KB5074109-OOB on January 17, 2026
.
Hidden Registry Fix (If OOB patch fails):
cmd
Copy
# Force legacy authentication protocol temporarily
reg add "HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\Policies\System\CredSSP\Parameters" /v AllowEncryptionOracle /t REG_DWORD /d 2 /f
# Restart Terminal Services
net stop TermService && net start TermService