Microsoft has issued fixes for a pair of troublesome bugs introduced with its August 2025 Patch Tuesday cumulative security updates.
The updates — KB5063875, KB5063709, and KB5063877 — not only triggered installation errors that blocked some Windows 11 devices from upgrading, but also broke reset and recovery tools across both Windows 11 and Windows 10. The problems affected Windows 11 (22H2 and 23H2) and, in the case of reset and recovery failures, Windows 10 version 22H2 as well.
Together, the flaws caused headaches for end users and IT admins until Microsoft rolled out follow-up fixes, including an out-of-band (OOB) update.
“This update addresses an issue introduced by the August 2025 security update, in which attempts to reset or recover the device might fail,” Microsoft said in a release note published on Tuesday, August 19. The Redmond giant did not issue a standalone patch for the upgrade error, but marked the issue as resolved on August 18.
Reset and recovery failures
The August updates caused system reset and recovery features to break across both Windows 11 versions (22H2/23H2) and Windows 10 version 22H2. This included failures when using “Reset this PC,” “Fix problems using Windows Update,” and the “RemoteWipe CSP” function used in enterprise environments.
Other affected clients include devices running Windows 10 Enterprise LTSC 2021 and Windows 10 IoT Enterprise LTSC 2021; Windows 10 Enterprise LTSC 2019 and Windows 10 IoT Enterprise LTSC 2019. No server products were affected.
To correct this, Microsoft released an out-of-band cumulative update (KV5066189) on August 19, 2025. The OOB update replaces the earlier August security rollouts, ensuring reset and recovery tools function as expected.
“We recommend installing this optional out-of-band (OOB) update if you’ve encountered this issue,” Microsoft added in the note. “If your system isn’t affected or you don’t plan to use the processes described above, you can choose not to install the update.”
Upgrade errors on Windows 11
One of the first problems users encountered after Patch Tuesday was a failed upgrade error when trying to install the update on Windows 11. The failure appeared with error code 0x8007007F, preventing some devices from completing the installation.
Apart from affected clients running Windows 11 v23H2 and Windows 11 v22H2, the bug affected systems running Windows Server 2022 and Windows Server 2019.
The company resolved the issue without requiring manual action from users, noting that affected devices should now install the update successfully. “This issue was resolved as of August 15, 2025. Devices upgraded after this date should no longer encounter this error. If you do experience error ‘0x8007007F,’ retrying the upgrade process will typically resolve the issue,” it said.
Microsoft noted that upgrades to Windows 11 24H2 and Windows Server 2025 are not affected by this issue. The Patch Tuesday release was a hefty one, with Microsoft fixing 107 security vulnerabilities-including several critical issues spanning Windows, Exchange, and SharePoint, even Extended Security Updates (ESU) policy for Exchange Server users.