Windows users who attempted to reset or recover their devices after receiving the August 2025 security update may face issues with the “Reset my PC” function, which has been confirmed by Microsoft as broken. The problem affects various versions of Windows, including outgoing Windows 10.
Microsoft announced that some Windows upgrades might fail with an error code (0x8007007F), but the company claims to have fixed this issue by August 15. However, affected users cannot ignore this reset and recovery problem, and there is no simple workaround.
In response, Microsoft plans to release an out-of-band update for the affected platforms in the coming days to resolve this issue. Users will need to hold off recovering or resetting their devices until then.
Source: https://www.theregister.com/2025/08/19/windows_reset_recovery_broken