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Troubleshoot Windows 365 Business Cloud PC setup issues

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If your users get the “Setup failed” error, or if setup takes longer than 90 minutes after you assign them a license, use the steps in this article to resolve the issue.

Important

You must be a Global admin to do most of the tasks described in this article. If other admin roles can be used for a specific procedure, they are noted before the procedure. If you don’t have permission to log in to or access parts of the Azure portal, contact your IT admin. For more information about Azure rules, see Microsoft Entra built-in roles. To learn more about the Azure portal, see Azure portal overview.

Make sure MDM authority configuration is set up correctly

It’s possible that the setup failure is caused by the MDM authority configuration in your environment. If so, you have two paths to follow, depending on whether you plan to use Microsoft Intune to manage the Cloud PCs.

Path A. Use Microsoft Intune to manage your Cloud PCs

If you already use Microsoft Intune, or plan to use it to manage your Windows 365 Cloud PCs, make sure that your Mobility (MDM and MAM) settings in Microsoft Entra ID are correctly configured.

  1. In the Azure portal, go to the Microsoft Entra Overview page.
  2. In the left nav, under Manage, select Mobility (MDM and MAM), then select Microsoft Intune.
  3. On the Configure page, next to MDM user scope, select Some or All, then select Save.
  4. In the left nav, under Manage, select Mobility (MDM and MAM), select Microsoft Intune Enrollment, then repeat step 3.

If the automatic enrollment of new Cloud PCs into Microsoft Intune setting is turned on, users may see their Cloud PCs fail to complete their setup in the Windows 365 home page. This failure can be caused by various settings on your tenant. Consult the following table for how to troubleshoot these issues.

Error Troubleshooting steps
To complete the setup, ask your administrator to resolve the following: - Update policy settings in Microsoft Intune to enroll this device. Check the Intune settings you may have previously set on your tenant. For more, see Troubleshoot policies and profiles. Once the issue has been fixed, either you or the user can reset the Cloud PC.
To complete the setup, ask your administrator to resolve the following: - Remove restrictions preventing Intune from allowing Windows enrollment. You may have set up enrollment restrictions on your Intune tenant. For more information, see Enrollment restrictions overview. Once the restrictions have been removed, either you or the user can reset the Cloud PC.
To complete the setup, ask your administrator to resolve the following:- Correct the configuration of the Mobile Device Management discovery URL in Intune. Confirm that the MDM discovery URL is the default for Intune. Follow steps 1-4 to set it in Configure automatic MDM enrollment. Once the MDM discovery URL has been set to the default, either you or the user can reset the Cloud PC.

Users who are assigned a Cloud PC must have an Intune license assigned to them to receive user policies. The CloudPCBPRT system account doesn't need to be assigned an Intune license.

Important

To assign licenses, you must be a Global or Licensing admin, or have a role with licensing permissions.

  1. In the Microsoft Intune admin center, select Users > All Users.
  2. In the All users list, select a user.
  3. On the user Profile page, select Licenses.
  4. On the Licenses page, select Assignments.
  5. Find Intune, select the checkbox, then select Save. The user account now has the permissions needed to use the service and enroll devices.
  6. Go to Reset your Cloud PCs.

Path B. Turn off automatic MDM enrollment and Intune enrollment in Organization Settings

If you don’t plan to use Microsoft Intune for your Cloud PC management, you must turn off automatic MDM enrollment and uncheck Enroll new Cloud PCs in Microsoft Intune in Organization Settings.

Important

If you’re not the MDM administrator, don’t use either of the following procedures without first consulting with your IT admin. Only follow these procedures if Cloud PCs aren’t being set up. Any configuration changes could impact your management environment. If you need help, contact Intune support.

Use the Microsoft Entra portal to turn off automatic Intune enrollment

  1. In the Azure portal, go to the Microsoft Entra Overview page.
  2. In the left nav, under Manage, select Mobility (MDM and MAM), then select Microsoft Intune.
  3. On the Configure page, you'll see one of two things. If you have a Microsoft Entra ID P1 or P2 subscription, select None next to MDM user scope, then select Save. If you don't have a Microsoft Entra ID P1 or P2 subscription, select Disable.
  4. In the left nav, under Manage, select Mobility (MDM and MAM), select Microsoft Intune Enrollment.
  5. Go to Reset your Cloud PCs.

Turn off the automatic enrollment of newly created Cloud PCs

  1. In the Windows 365 home page, go to **Your organization's Cloud PCs", then select Update organization settings.
  2. On the right-hand side, scroll down to Microsoft Intune and unselect the Enroll new Cloud PCs in Microsoft Intune checkbox.
  3. Click Save at the bottom.

Reset your Cloud PCs

After you complete the troubleshooting steps in this article, your users must restart their Cloud PC setup. Tell all Cloud PC users who saw the “Setup failed” error to use the following steps to reset their Cloud PCs.

  1. On the Windows 365 home page, select the gear icon for any Cloud PC that has the “Setup failed” status, then select Reset. This action restarts the setup process.
  2. After the reset, if the “Setup failed” error still displays, and you skipped Make sure MDM authority configuration is set up correctly, complete that step, then reset the CloudPC again. Otherwise, in the left nav, select New support request to open a support ticket.