Introduction

The release of Windows 11 version 24H2 has introduced several enhancements aimed at improving user experience and system performance. However, enterprise environments have encountered significant challenges during deployment, particularly concerning Group Policy management and update processes. This article delves into these issues, their implications, and the steps taken to address them.

Group Policy Application Failures

The Issue

Organizations deploying Windows 11 24H2 have reported failures in applying Group Policy Objects (GPOs). Administrators executing the INLINECODE0 command observed errors indicating that computer policies could not be updated successfully. The error messages often pointed to issues with resolving the computer name or authenticating with Active Directory services.

Root Cause

Investigations revealed that the problem stemmed from changes in Kerberos encryption requirements. Windows 11 24H2 mandates the use of AES encryption types (AES128HMACSHA1 and AES256HMACSHA1) for Kerberos authentication. In environments where these encryption types were disabled or not configured, GPO application failures occurred.

Resolution

To resolve this issue, administrators should:

  1. Verify Domain Controller Support: Ensure that domain controllers support AES encryption types.
  2. Configure Group Policy Settings: Enable AES128HMACSHA1 and AES256HMACSHA1 encryption types in the Group Policy settings under:

``INLINECODE1 `INLINECODE2 `INLINECODE3 `INLINECODE4 SupportedEncryptionTypesINLINECODE5 0x7ffffffcINLINECODE6 gpupdate /forceINLINECODE7 0x80240069`, preventing successful installations.

Root Cause

The failures were linked to a Group Policy bug that interfered with the update process, particularly affecting devices managed through WSUS. This issue was not classified as a safeguard hold but rather a policy interaction that blocked the upgrade path.

Resolution

Microsoft addressed this issue through a Known Issue Rollback (KIR) fix identified under KB5055528. Administrators are advised to:

  1. Apply the KIR Fix: Deploy the KIR fix to restore upgrade functionality.
  2. Monitor Update Readiness: Regularly review update readiness via the Windows Health Dashboard to stay informed about potential issues and resolutions.

Authentication Issues with Credential Guard

The Issue

Systems with Credential Guard enabled experienced authentication problems due to improper password rotation when using the Kerberos PKINIT pre-authentication protocol. This led to devices being perceived as stale, disabled, or deleted, resulting in authentication failures.

Root Cause

The issue was caused by a failure in the default 30-day password rotation process, leading to authentication problems in enterprise environments utilizing Kerberos authentication.

Resolution

Microsoft released a fix in the April 2025 security updates for Windows 11 24H2 and Windows Server 2025. Administrators should:

  1. Install the Latest Updates: Ensure that all devices have the latest security updates installed.
  2. Monitor Credential Guard Settings: Be aware that Machine Accounts in Credential Guard have been temporarily disabled until a permanent fix is implemented.

Implications for Enterprise IT

The challenges encountered with Windows 11 24H2 highlight the complexities of managing large-scale deployments in enterprise environments. Key takeaways include:

  • Proactive Policy Management: Regularly review and update Group Policy settings to align with the latest security protocols and system requirements.
  • Comprehensive Testing: Conduct thorough testing of updates in a controlled environment before widespread deployment to identify and mitigate potential issues.
  • Continuous Monitoring: Utilize tools like the Windows Health Dashboard to stay informed about known issues and their resolutions.

Conclusion

While Windows 11 24H2 offers valuable enhancements, its deployment in enterprise settings has been accompanied by significant challenges related to Group Policy management and authentication protocols. By understanding these issues and implementing the recommended resolutions, IT administrators can ensure a smoother transition and maintain system integrity.