Windows August update leaves recovery and reset functions non-operational
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In a surprising turn of events, Microsoft has acknowledged that the August 2025 security update has caused issues with the reset and recovery functionality in several versions of Windows 10 and some older Windows 11 versions. The problem, which affects Windows 10 versions 22H2 and LTSC editions, as well as Windows 11 versions 22H2 and 23H2, has left millions of users and IT administrators in a predicament.
The issue manifests itself through the failure of features like the "Reset this PC" and "Fix problems using Windows Update." These features are essential for reinstalling Windows while keeping files, apps, and settings, and their failure prevents users from performing these tasks. Attempts to reset typically start but then roll back immediately without warning, leaving the recovery unusable but without data loss. This also impacts IT admins using the RemoteWipe CSP for remote resets.
Microsoft acted swiftly, releasing an out-of-band emergency update on August 19, 2025, to address the problem. This cumulative update fixes the bugs caused by the August security patches, specifically KB5063875 (Windows 11 23H2 and 22H2), KB5063709 (Windows 10 22H2 and Enterprise/IoT LTSC 2021), and KB5063877 (Windows 10 Enterprise/IoT LTSC 2019).
It's worth noting that a related issue with BitLocker recovery prompts on machines with Intel vPro processors and Intel Trusted Execution Technology was resolved earlier in May 2025 with a separate out-of-band update KB5061768. This issue mainly affected devices with Intel TXT enabled.
Windows users and administrators are advised to immediately install the August 2025 out-of-band patch to restore reset and recovery functionality and avoid reset failures. Prior to this, Microsoft had issued a 60-day warning for the end of servicing for Windows 10 22H2 a few days prior. Starting August 12, some Windows upgrades might fail with an error code, but retrying the upgrade process typically resolves the issue.
The problem has been compared to a game of Russian Roulette due to the unpredictable nature of installing Windows patches. Handing down an old Windows 10 machine could be problematic due to the failure of the "Reset my PC" function. Users are encouraged to keep this in mind when considering the transfer of devices.
| Issue | Affected Versions | Cause | Fix | Notes | |-------|-------------------|-------|-----|-------| | Reset and recovery fail (reset rollback, recovery tools broken) | Windows 10 22H2, LTSC 2019/2021; Windows 11 22H2, 23H2 | August 2025 security update bugs (KB5063875, KB5063709, KB5063877) | Emergency OOB cumulative update released Aug 19, 2025 | Reset process fails silently, no data loss but unusable recovery | | BitLocker recovery prompt on Intel vPro devices | Windows 10 22H2, LTSC 2021 | May 2025 security update KB5058379 causing lsass.exe crash | Out-of-band update KB5061768 released May 19, 2025 | Mainly affects devices with Intel TXT enabled |
[1] Microsoft Support - August 2025 Out-of-band update for Windows 10 and Windows Server [2] Microsoft Support - May 2025 Out-of-band update for Windows 10 and Windows Server [3] ZDNet - Microsoft issues emergency out-of-band update for Windows 10 and Windows Server [4] The Verge - Microsoft issues emergency update to fix Windows 10 and Server reset and recovery issues [5] BleepingComputer - Microsoft releases emergency out-of-band updates for Windows 10 and Windows Server to fix reset and recovery issues
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