Windows 10 Enterprise to Windows 11 24H2 Upgrade in Place Login Issues

Question

We have a large number of Windows 10 Enterprise systems that we are upgrading to Windows 11 24H2 via WSUS. What we are seeing on a decent number of systems is the following:

A user can log in with their smart card, and then if they log out, remove their smart card to lock the system, or walk away and let Windows lock on its own, they cannot log in again unless the system is rebooted.  Error messages they see can be:

 

"Credentials could not be verified"

"Provider cannot perform the action since the context was acquired as silent"

“Invalid Credentials”

 

Most of the time if I try to connect to these systems via RDP, I will get “invalid username or password” (even though I know the credentials are valid) or “credentials could not be verified”.  If I reboot the system and try and RDP session right away, I can log in. If someone is already logged into the system and I try to RDP it does not let me know that another user is currently logged in like normal- it will either let me log in or give me the previous error messages above.

It almost seems like Windows is not truly logging the user out.  Normally an RDP session will notify that someone else is currently logged in, which does not happen.

It might also be of note that sometimes it takes anywhere up to 15 days for the user to report that they are having issues. I'm not sure if that is because they are logging in with cached credentials or not, but does not seem to be the case since we have cached logon counts set to 2.

Also running ActivClient 7.1.4.5