Hello Audrey,
This issue is not related to Windows 365 Enterprise or Windows for Business licensing; it is a core Windows OS behavior involving Fast User Switching and session handling after sleep. The errors you are seeing, particularly “Windows couldn’t connect to the Group Policy Client service,” point to a timing or initialization problem with the gpsvc service when a second interactive logon is attempted after the system resumes from a prolonged sleep state.
Based on current documentation and reported cases, this is a known intermittent issue in recent Windows builds. The Group Policy Client service is designed to initialize during the first interactive session after resume, but in scenarios where Fast User Switching is invoked before the service completes its initialization, the second session can fail to attach properly. This explains why the problem does not occur after a reboot or immediate switch, but only after the machine has been in sleep for some time.
Diagnostics you should collect include Event Viewer logs under Applications and Services Logs > Microsoft > Windows > GroupPolicy > Operational, as well as System logs filtered for gpsvc and winlogon. A trace using Windows Performance Recorder with the “System Activity” profile during sleep/resume followed by Switch User can also help confirm service startup delays.
There is no official hotfix at this time, but Microsoft’s recommended mitigations are:
Ensure the Group Policy Client service (gpsvc) is set to Automatic startup and not delayed. You can verify this in services.msc.
In shared-device environments, consider disabling Fast User Switching via Group Policy: Computer Configuration > Administrative Templates > System > Logon > Hide entry points for Fast User Switching. This prevents the scenario entirely.
Alternatively, configure sleep policies to favor hibernation instead of sleep, as hibernation restores the session in a more stable state for service initialization.
If you need to continue using Fast User Switching, the best practice is to instruct users to wake the device and wait until the first session is fully responsive before attempting Switch User. This avoids the race condition with gpsvc.
At this point, the behavior is acknowledged but not yet patched. If reproducibility is critical in your environment, I recommend opening a formal support case with Microsoft to provide your logs, as this will help escalate the issue for engineering review.
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!
Domic Vo.