Microsoft has confirmed that some Windows 11 virtual desktops fail to load after sign-in, leaving users with a black screen. The problem is tied to the August 2026 non-security preview update and later releases, and has been observed primarily on Azure Virtual Desktop hosts using FSLogix, according to the company.
The temporary workaround is to open Task Manager and run explorer.exe as a new task. Microsoft has also issued a Known Issue Rollback that administrators can deploy through Group Policy to disable the offending change until a permanent fix arrives. The affected versions are Windows 11 26H1, 25H2, and 24H2; Windows 10 and Windows Server are not listed.
Microsoft says the issue appears more frequently with some existing user profiles, but has not explained the root cause. This is separate from an earlier August preview problem that replaced custom desktop backgrounds with solid black, which Microsoft fixed in September. The Register notes that this is the latest in a string of issues from Microsoft's recent updates, raising questions about the company's quality promises.