A few days ago, Microsoft released an optional cumulative update with code KB5039302 for Windows 11 versions 22H2 and 23H2 (builds 22621.3810 and 22631.3810, respectively). After installing it, some users experienced endless computer reboots.
The update itself is an optional/preview patch that comes with several new features and UI changes. To name a few, there is the restored "Show desktop" button in the taskbar right corner, the ability to create 7z and tar archives, emoji 15.1, the ability to copy files from the share dialog, and more. Of course, there are some fixes. But something went wrong.
The cycle reboot issue is reported to occur on devices that use virtual machines and nested virtualization, such as CloudPC, DevBox, or Azure Virtual Desktop software. The company is continuing to investigate to determine the exact cause of the bug. But currently, the roll-out of the update for Windows 11 is suspended.
There are no workarounds provided on the Health Dashboard website as of this writing. If you are affected, consider removing the buggy KB5039302 patch.
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Microsoft has resumed offering the KB5039302 update for Windows 11 22H2/23H2 Saturday night June 29
learn.microsoft.com/en-us/windows/release-health/status-windows-11-23h2#2831msgdesc
“Availability of this update via Windows Update and Windows Update for Business was paused for a couple of days, but is being resumed today for most devices. This update offering is now paused only for devices affected by the issue. As a result, this update might not be offered to Hyper-V virtual machines running on hosts that utilize certain processor types.”