Microsoft has confirmed that the latest Windows security updates are breaking reset and recovery operations on systems running Windows 10 and older versions of Windows 11. The company advises users who installed the August 2025 security update to be cautious when using features like “Reset my PC” or “Fix problems using Windows Update”.
Specifically, users may encounter issues with remote device resets, reinstalling systems with files, apps, and settings intact, or even with updating devices through Windows Server Update Services (WSUS). Microsoft is currently working on a fix for this issue, which will be delivered via out-of-band updates.
The company has previously addressed similar issues, including fixing problems with certificate enrollment and cluster service restarts. Users can prepare for potential disruptions by having a Windows ISO handy for in-place upgrades, as suggested by user jmwoods in the comments section.
Source: https://www.bleepingcomputer.com/news/microsoft/microsoft-august-security-updates-break-windows-recovery-reset