Microsoft has updated the official Windows Health Dashboard page with a new known issue in Windows. According to Microsoft, the latest cumulative updates the company released on June 14 cause problems with Wi-Fi hotspots. Upon connecting to a hotspot, Windows computers drop the connection to the Internet.
The problem affects various Windows client and server versions, such as Windows 11, 10, and even 7. Currently, the only way to bypass this bug is to disable the Wi-Fi hotspot and find another way to connect to the internet.
After installing KB5014697, Windows devices might be unable use the Wi-Fi hotspot feature. When attempting to use the hotspot feature, the host device might lose the connection to the internet after a client device connects.
Workaround: To mitigate the issue and restore internet access on the host device, you can disable the Wi-Fi hotspot feature. For instructions, please see Use your Windows PC as a mobile hotspot.
Those in dire need to use Wi-Fi hotspot on their Windows computers can try rolling back the botched Windows update and wait for Microsoft to release a better workaround than just turning off the needed feature.
Update: Microsoft fixed the bug with optional updates for Windows 11 (KB5014668) and Windows 10 (KB5014666).