KB5029863: Microsoft improves Windows 11 setup, WinRE with "critical" dynamic update

An image with a colorful Windows 11 22H2 logo and a dimmed background

Earlier today or last night, depending on where you live, Microsoft released its non-security C-release for updates for Windows 10 (KB5029331) and Windows 11(KB5029332, KB5029351). Alongside those, the tech giant has also released KB5029863 Dynamic Update, labeled "critical" for Windows 11 version 22H2. The dynamic update helps to improve the setup process of Windows, generally when a new feature update initiates.

The support article for the new KB5029863 update says:

KB5029863: Compatibility update for installing and recovering Windows 11, version 22H2: August 22, 2023

Summary

This update makes improvements to the Windows recovery features for Windows 11, version 22H2.

In a Tech community blog post about Windows 10 Dynamic Updates, Microsoft explained Dynamic Updates in more detail regarding its various components and uses. These packages include fixes to Setup.exe binaries, SafeOS updates for Windows Recovery Environment, and more:

As soon as a Windows 10 feature update initiates, whether from media or a Windows Update service-connected environment, Dynamic Update is one of the first steps invoked. Windows 10 Setup reaches out to an Internet-facing URL hosted by Microsoft to fetch Dynamic Update content, then applies those updates to your OS installation media.

Content acquired includes:

Setup Updates: Fixes to Setup binaries or any files that Setup uses for feature updates.

Safe OS Updates: Fixes for the "safe OS" that are used to update Windows recovery environment (WinRE).

Servicing Stack Updates: Fixes that are necessary to address the Windows 10 servicing stack issue and thus required to complete the feature update.

Latest Cumulative Update: Installs the latest cumulative quality update.

Driver Updates: Latest version of applicable drivers that have already been published by manufacturers into Windows Update and specifically targeted for Dynamic Update.

In addition to these updates, Dynamic Update will preserve Language Pack (LP) and Features on Demand (FODs) content during the upgrade process. These are not updates to LPs and FODs, but reacquisition to ensure the user has these elements present with the update completes.