(SOLVED) KB5124008 (26200.9445) breaks machine secure channel / domain trust — reproducible, Server 2019 DCs

Alex Turner 60 Reputation points
2026-09-09T17:57:27.8766667+00:00

After installing KB5124008 (OS Build 26200.9445) on Windows 11 domain-joined workstations, affected machines lose their domain secure channel and users can no longer log on interactively. I have a deterministic reproduction (uninstall fixes it, reinstall breaks it again), confirmed on 6 machines so far, so I've paused fleet deployment.

Posting here because this looks like a possible regression and I'd like to know if anyone else is seeing it.

Environment

  • Clients: Windows 11, OS Build 26200.9445 (KB5124008) - 25H2
  • DCs: Windows Server 2019 (×2), single AD domain, healthy - running August patches
    • Active Directory Domain Services functional level -Windows Server 2016 functional level
  • Deployment via WSUS + SmartDeploy

Symptoms

  • Interactive logon fails with "The user name or password is incorrect" using valid credentials
  • Cached-credential logon works when offline
  • Test-ComputerSecureChannel returns False ("secure channel … is broken")
  • nltest /sc_query:<domain>ERROR_NO_TRUST_LSA_SECRET (1786)
  • DC Security log Event 4625 for the computer account (HOST$), Logon Type 3, NTLM, Status 0xC000006D, Sub-Status 0xC000006A
  • Network-type auth still works (net use \\DC\IPC$ with same creds); only machine-channel/interactive auth fails

Reproduction

  1. Domain-joined Win11 machine logs on normally
  2. Install KB5124008 → reboot → secure channel breaks, logon fails
  3. Uninstall KB5124008 → leave domain / join workgroup → reboot → rejoin domain → reboot → fixed
    • Note: Reset-ComputerMachinePassword / Test-ComputerSecureChannel -Repair was NOT enough; a full leave-and-rejoin was required
    1. Reinstall KB5124008 → failure returns → same fix resolves it again

Already ruled out

  • Duplicate SIDs — machines have unique machine SIDs
  • Server 2025 DC password-rotation issue — DCs are Server 2019
  • DNS (nltest /dsgetdc succeeds), AD replication (repadmin /replsummary clean), time skew (<1s), account lockout (no 4740, BadLogonCount 0), DC health (dcdiag clean; Netlogon/KDC/DNS/NTDS running)

Questions

  1. Is anyone else seeing machine secure-channel / domain-trust breakage after KB5124008 against Server 2019 DCs?
  2. Is there a supported mitigation or hotfix to deploy KB5124008 without breaking trust?
  3. Any known interaction between this update and Netlogon secure-channel signing/strong-key enforcement I should check on the DCs?After installing KB5124008 (OS Build 26200.9445) on Windows 11 domain-joined workstations, affected machines lose their domain secure channel and users can no longer log on interactively. I have a deterministic reproduction (uninstall fixes it, reinstall breaks it again), confirmed on 3 machines so far, so I've paused fleet deployment. Posting here because this looks like a possible regression and I'd like to know if anyone else is seeing it. Environment
    • Clients: Windows 11, OS Build 26200.9445 (KB5124008)
    • DCs: Windows Server 2019 (×2), single AD domain, healthy
    • Deployment via WSUS + SmartDeploy
    Symptoms
    • Interactive logon fails with "The user name or password is incorrect" using valid credentials
    • Cached-credential logon works when offline
    • Test-ComputerSecureChannel returns False ("secure channel … is broken")
    • nltest /sc_query:<domain>ERROR_NO_TRUST_LSA_SECRET (1786)
    • DC Security log Event 4625 for the computer account (HOST$), Logon Type 3, NTLM, Status 0xC000006D, Sub-Status 0xC000006A
    • Network-type auth still works (net use \\DC\IPC$ with same creds); only machine-channel/interactive auth fails
    Reproduction
    1. Domain-joined Win11 machine logs on normally
    2. Install KB5124008 → reboot → secure channel breaks, logon fails
    3. Uninstall KB5124008 → leave domain / join workgroup → reboot → rejoin domain → reboot → fixed
      • Note: Reset-ComputerMachinePassword / Test-ComputerSecureChannel -Repair was NOT enough; a full leave-and-rejoin was required
    4. Reinstall KB5124008 → failure returns → same fix resolves it again
    Already ruled out
    • Duplicate SIDs — machines have unique machine SIDs
    • Server 2025 DC password-rotation issue — DCs are Server 2019
    • DNS (nltest /dsgetdc succeeds), AD replication (repadmin /replsummary clean), time skew (<1s), account lockout (no 4740, BadLogonCount 0), DC health (dcdiag clean; Netlogon/KDC/DNS/NTDS running)
    Questions
    1. Is anyone else seeing machine secure-channel / domain-trust breakage after KB5124008 against Server 2019 DCs?
    2. Is there a supported mitigation or hotfix to deploy KB5124008 without breaking trust?
    3. Any known interaction between this update and Netlogon secure-channel signing/strong-key enforcement I should check on the DCs?

--Update 9/14/2026 ---
Using the advice from very helpful answers below we now have a mitigation path. Our machine identity isolation was enabled in enforcement mode.

Screenshot here is what causes the failure.
User's image

We took advice from answers below and set it to disabled (0) both on the GPO and intune baseline security configuration.

User's image

We also configured the GPO to disabled but that didnt seem to set the value very well on the machine itself. We ended up also forcing 0 on the registry key.

User's image

We plan to revisit this next month and test enforcing it again after patching in October.


Windows for business | Windows Client for IT Pros | Devices and deployment | Install Windows updates, features, or roles

Answer accepted by question author
Marcel Zehnder 90 Reputation points
2026-09-11T06:00:48.0733333+00:00

I have had the exact same problem with the first machine that recieved KB5124008. Every few minutes and after each reboot the secure channel got lost. With the help of ChatGPT I could fix it by changing the registry value HKLM\SYSTEM\CurrentControlSet\Control\Lsa\MachineIdentityIsolation from 2 to 0.

After a reboot, I had to restore the secure channel by 'Test-ComputerSecureChannel -Repair -Credential(Get-Credential)'. Since then, the computer is running without loosing the secure channel anymore.

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  1. Harry Phan 31,295 Reputation points Independent Advisor
    2026-09-10T00:14:57.95+00:00

    Hello Alex,

    You’ve done an excellent job documenting the reproduction and ruling out the usual suspects. Based on the behavior you’re describing, KB5124008 is almost certainly introducing a regression in how Windows 11 clients negotiate the Netlogon secure channel with Server 2019 domain controllers. The key indicators are the ERROR_NO_TRUST_LSA_SECRET (1786) from nltest and the fact that cached credentials still work offline, which points directly to the machine account trust relationship being broken at the LSA secret level.

    Microsoft has recently hardened Netlogon secure channel requirements in cumulative updates, enforcing stronger key negotiation and signing. On Server 2019 DCs, if the client update enforces stricter requirements than the DCs advertise, the secure channel handshake fails. This explains why Reset-ComputerMachinePassword doesn’t help: the failure isn’t the password itself, but the negotiation mechanism introduced in KB5124008.

    At this point, there is no supported registry-based rollback for Netlogon hardening on the client side. The only reliable mitigation is to uninstall KB5124008 until Microsoft publishes a hotfix or updated guidance. If you must keep the patch for security reasons, the alternative is to raise the DCs to Server 2022 or later, where Netlogon supports the hardened negotiation model introduced in recent Windows 11 builds. That aligns with Microsoft’s documented Netlogon enforcement timeline.

    I recommend opening a case with Microsoft Support referencing KB5124008 and the secure channel regression against Server 2019 DCs. This will help escalate the issue and get an official fix or workaround published. Until then, pausing deployment of KB5124008 across your fleet is the correct move.

    I hope you've found something useful here. If it helps you get more insight into the issue, it's appreciated to accept the answer. Should you have more questions, feel free to leave a message. Have a nice day!HP.

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  2. Gabriel Burcusel 0 Reputation points
    2026-09-15T12:07:56.7766667+00:00

    Today it hit me aswell.. Secure channel trust broken for several clients, but "Machine Identity Isolation" is not enabled on my environment. I had to use the laps admin to log on the affected clients and run the repair powershell command.

    Really annoying and frustrating, found this article only after spending several hours finding the cause and solution.

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  3. Jim Iversen 0 Reputation points
    2026-09-11T16:06:08.17+00:00

    Not sure if this has any impact on what's going on with this KB...

    Windows 10 Pro 25H2, build 26200.9445 with Security Update KB5124008 NT AUTHORITY\SYSTEM 9/10/2026 12:00:00 AM installed.

    Test-ComputerSecureChannel returns True.

    DC's are a mix of 2019 and 2022.

    Workstation logon is using Okta Verify with YubiKey Security Token. Not having any issues yet.

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