A desktop loading problem has emerged following the deployment of August 2026 preview updates and later releases, according to Microsoft. The issue predominantly impacts organizations operating Azure Virtual Desktop (AVD) infrastructure that relies on FSLogix, the profile acceleration technology used in virtual desktop deployments.

Affected Windows systems display several distinct symptoms. Users frequently encounter black screens upon login, preventing access to their desktop environment until they manually restart the session. Application event logs simultaneously record instances of Windows Explorer failing unexpectedly.

The problem stems from updates including KB5120996 (Windows 11 26H1), KB5120998 (Windows 11 24H2/25H2), and this month's Patch Tuesday releases (KB5124008 and KB5122880). While Microsoft works toward a permanent resolution, the company recommends an immediate workaround for affected users.

Temporary Workaround

Users experiencing the issue can restore desktop access by manually launching Windows Explorer. The process involves opening Task Manager using Ctrl+Shift+Esc, selecting Run new task, typing explorer.exe, and clicking OK.

Enterprise Mitigation

Microsoft has deployed a Known Issue Rollback (KIR) feature for enterprise-managed systems, allowing IT teams to reverse the problematic update through Windows Update. Enterprise administrators can apply the mitigation by installing the appropriate group policy for their Windows version:

  • Windows 11, version 26H1: KB5124006 Known Issue Rollback
  • Windows 11, version 25H2 and Windows 11, version 24H2: KB5124010 Known Issue Rollback

According to Microsoft, "You will need to install and configure the Group Policy for your version of Windows to resolve this issue. You will also need to restart your device(s) to apply the group policy setting. Note that this Group Policy will disable the change causing this issue until a resolution is released in a future Windows update."

Additional deployment and configuration guidance for KIR group policies is available through Microsoft's support documentation.

Earlier in August, Microsoft resolved a separate known issue triggered by the KB5120998 optional update that had been erasing mouse settings and desktop configurations on certain Windows 11 machines.