Microsoft has acknowledged that a subset of users may encounter desktop loading challenges, notably black screens, following the installation of the August 2026 preview updates and subsequent releases. This issue predominantly affects Azure Virtual Desktop (AVD) hosts utilizing FSLogix, a software designed to enhance user profile loading within virtual desktop environments.
Symptoms and Temporary Solutions
Users experiencing this known issue may notice several symptoms, the most prevalent being a black screen post-sign-in, which prevents access to the desktop until the session is manually initiated. Additionally, application event logs may reveal crashes related to Windows Explorer.
For those who have installed updates KB5120996 (Windows 11 26H1), KB5120998 (Windows 11 24H2/25H2), and the recent Patch Tuesday updates (KB5124008 and KB5122880), Microsoft recommends a temporary workaround. Users can manually launch Windows Explorer by following these steps:
- Open Task Manager by pressing Ctrl+Shift+Esc.
- Select Run new task.
- Type explorer.exe and click OK.
For enterprise customers, Microsoft has implemented a mitigation strategy through Known Issue Rollback (KIR), a feature that allows for the reversal of problematic updates delivered via Windows Update. IT administrators can apply this mitigation on enterprise-managed devices by installing the appropriate group policies.
“To resolve this issue, you will need to install and configure the Group Policy for your version of Windows. A restart of your device(s) will be necessary to apply the group policy setting,” Microsoft stated. “This Group Policy will disable the change that is causing the issue until a resolution is provided in a future Windows update.”
Further guidance on deploying and configuring KIR group policies can be found on Microsoft’s support website.
Earlier this month, Microsoft also addressed known issues that resulted in the loss of mouse and desktop settings on certain Windows 11 systems, which were similarly triggered by the installation of the KB5120998 August 2026 optional update.
