Microsoft has confirmed that recent Windows updates trigger RemoteApp connection failures on Windows 11 24H2/25H2 and Windows Server 2025 devices in Azure Virtual Desktop environments.

RemoteApp enables users to stream individual Windows applications from the cloud without loading an entire virtual desktop, making them to run like local, native applications.

This known issue occurs after installing the November 2025 KB5070311 non-security update or a later one, primarily affecting enterprise users while leaving full desktop sessions unaffected.

Microsoft said these RemoteApp connectivity issues don't affect personal devices running Windows Home or Pro editions, since Azure Virtual Desktop is predominantly deployed in enterprise settings.

Affected organizations can mitigate this bug by manually adding a registry key while logged in with an account that has administrator privileges, then restarting the system.

This requires IT admins to go through the following procedure:

1. Open Command Prompt as an administrator.
2. Run this command: reg add ""HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\WinLogon\ShellPrograms\RdpShell.exe" /v "ShouldStartRailRPC" /t REG_DWORD /d 1 /f
3. Restart the device to apply the change.

Microsoft also mitigated this bug on Windows Pro and Windows Enterprise devices through Known Issue Rollback (a Windows feature that reverses buggy updates delivered via Windows Update), and advised users to restart their devices to accelerate deployment.

In enterprise-managed environments where IT departments control Windows updates, administrators can manually apply the rollback by installing and configuring this Group Policy.

"You'll need to install and configure the Group Policy for your version of Windows to resolve this issue," Microsoft said. "You will also need to restart your device(s) to apply the group policy setting. Note that the Group Policy will temporarily disable the change causing this issue."

You can find additional guidance on deploying and configuring KIR group policies on Microsoft's support website.

Microsoft added that it's currently working to resolve this known issue, but it has yet to share a timeline for a permanent fix.