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Microsoft confirms Remote Desktop issues in Windows Server KB5040437 update

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Unlike consumer versions of Windows 11, Windows Server 2022 is not getting optional non-security updates, so the OS usually receives only one update every month as part of the Patch Tuesday routine. On July 9, Windows Server 2022 received KB5040437 under build number 20348.2582. Now, Microsoft has confirmed a bug affecting Remote Desktop capabilities.

Microsoft has updated the official documentation for KB5040437. In the revised document, the company mentions intermittent issues in organizations that use legacy protocol in Remote Desktop Gateway (Remote Procedure Call over HTTP). As a result, systems drop the connection, forcing users to reconnect to the server.

Fortunately, there is a workaround for the problem. While Microsoft is working on a patch, IT admins can track the issues by locating terminations of the TSGateway service with the exception code 0xc0000005. Also, they can mitigate the problem with two options:

Option 1: Disallow connections over pipe, and port \pipe\RpcProxy\3388 through the Remote Desktop Gateway.

This process will require the use of connection applications, such as firewall software. Consult the documentation for your connection and firewall software for guidance on disallowing and porting connections.

Option 2: Edit the registry of client devices, by removing a key related to RDGClientTransport

Open the Windows Registry Editor and navigate to the following registry location:
HKCU\Software\Microsoft\Terminal Server Client\RDGClientTransport

Find the registry key titled ‘DWORD’ and set the ‘Value Data’ field to ‘0x0’.

It is also worth noting that the problem affects not only Windows Server 2022 but older versions as well. The same behavior may be observed on Windows Server 2019, 2016, 2012, and 2012 R2. Server editions are also susceptible to another recently confirmed bug that causes Windows systems to boot into BitLocker recovery after installing July 2024 Patch Tuesday updates.

You can find more information about confirmed issues in KB5040437 here (via WinFuture).

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