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Microsoft Fixed the Patch Tuesday Fixes That Broke Windows Reset and Recovery — What You Need to Do Now

ByInnoVirtuoso

If Windows Update locked you out of “Reset this PC” or threw an 0x8007007F error in August, you weren’t imagining it. Microsoft’s August 2025 Patch Tuesday introduced two messy issues: upgrade failures on some Windows 11 devices and broken reset/recovery tools across Windows 10 and 11. The good news? Microsoft has now shipped the fixes. The better news? You probably don’t need to do much—unless you rely on reset, recovery, or remote wipe.

In this guide, I’ll break down what went wrong, what Microsoft fixed (and when), how to install the out‑of‑band update if you need it, and the exact steps to verify your recovery tools are healthy again. I’ll also cover what IT admins should do next to keep their fleets resilient.

Here’s why that matters: reset and recovery are your last lines of defense when a PC won’t boot, when ransomware strikes, or when you need to safely decommission a device. When those tools fail, downtime and data risk go up—fast.

Let’s get you back on solid ground.

What Broke in August: Two Bugs, One Painful Week

Microsoft’s August 2025 cumulative updates—KB5063875, KB5063709, and KB5063877—introduced two separate problems:

  • Reset and recovery features failed on Windows 11 (22H2, 23H2) and Windows 10 version 22H2. That included “Reset this PC,” “Fix problems using Windows Update,” and the enterprise “RemoteWipe CSP.”
  • Some Windows 11 devices failed to install the update with error code 0x8007007F, blocking upgrades.

Microsoft acknowledged both issues and rolled out fixes shortly after Patch Tuesday.

  • Reset/recovery failures: Fixed by an optional out‑of‑band (OOB) update released August 19, 2025: KV5066189. This update replaces the earlier August security rollups and restores reset and recovery functionality.
  • Upgrade errors (0x8007007F): Resolved by Microsoft without requiring a standalone patch. The issue was resolved as of August 15, 2025, and Microsoft marked it as resolved on August 18. Affected devices should now install successfully—retrying the upgrade typically works.

Let me explain why these two issues felt extra disruptive. The first one broke the very tools you count on when an update goes wrong. The second one blocked you from installing the update in the first place. Together, they created a Catch‑22 for some users and IT teams.

Impact: Which Versions and Editions Were Affected?

Here’s a quick recap of what Microsoft has confirmed:

  • Reset and recovery tools failed on:
  • Windows 11 22H2 and 23H2
  • Windows 10 22H2
  • Windows 10 Enterprise LTSC 2021 and Windows 10 IoT Enterprise LTSC 2021
  • Windows 10 Enterprise LTSC 2019 and Windows 10 IoT Enterprise LTSC 2019
  • Note: Microsoft said no server products were affected by this particular reset/recovery issue.
  • Upgrade error (0x8007007F) affected:
  • Windows 11 23H2 and 22H2
  • Windows Server 2022 and Windows Server 2019
  • Microsoft clarified that upgrades to Windows 11 24H2 and Windows Server 2025 were not affected.

If you’re on Windows 11 24H2 or rolling out Server 2025, you dodged the bullet.

Microsoft’s Fixes: Out-of-Band Update and a Server-Side Resolution

Microsoft took a two-pronged approach:

1) Out-of-band update (KV5066189) on August 19
This optional OOB cumulative update replaces the August security rollups and directly fixes the reset/recovery failures. If you use “Reset this PC,” Windows Recovery Environment, or enterprise wipe tools—or you’ve seen them fail—installing KV5066189 is recommended.

2) Server-side resolution for error 0x8007007F
Microsoft resolved the upgrade failure without a client-side patch. Devices attempting the upgrade after August 15 should complete successfully. If you still see 0x8007007F, retry the update. Most users report success on the second attempt after the fix propagated.

For transparency, you can track Microsoft’s status updates on the Windows release health dashboard here:
– Windows release health
– Microsoft Security Update Guide for monthly CVE summaries and patch details

What Is an Out-of-Band (OOB) Update?

An OOB update is a fix Microsoft ships outside the normal Patch Tuesday cycle. It’s reserved for issues serious enough to require an immediate patch. OOB updates often release as optional and can be installed via Windows Update, WSUS/Intune, or the Microsoft Update Catalog.

For August, KV5066189 is optional. Microsoft recommends it if you’ve encountered failed reset/recovery or if you rely on those tools in your environment.

Should You Install the August 19 OOB Update?

Short answer: Yes, if you’ve been impacted—or if reset and recovery are critical for your workflow.

  • Install KV5066189 if:
  • “Reset this PC” failed or is needed soon (e.g., device handoffs, refresh cycles)
  • Windows Recovery tools or “Fix problems using Windows Update” failed
  • You manage devices with RemoteWipe CSP or similar remote wipe scenarios
  • You run Windows 10/11 in environments where device recovery is essential (schools, frontline, loaners)
  • You can skip KV5066189 if:
  • You’re not impacted
  • You don’t plan to use reset/recovery processes soon
  • You prefer to wait for the fix to roll into September’s Patch Tuesday cumulative update

As Microsoft noted: “We recommend installing this optional out-of-band update if you’ve encountered this issue. 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.”

How to Install the OOB Update (KV5066189)

Home users and small teams can use Windows Update:

  • Open Settings > Windows Update
  • Click Check for updates
  • Look for the optional out-of-band cumulative update (KV5066189)
  • Click Download and install
  • Restart when prompted

If it doesn’t appear automatically, check the “Optional updates” section under Advanced options. You can also grab it from the Microsoft Update Catalog. IT admins can import and deploy via WSUS/ConfigMgr/Intune.

Tip: If Windows Update throws a “compliance” or “quality update” error, retry after a reboot. If that fails, temporarily pause updates, unpause, and check again.

Verify That Reset and Recovery Are Working Again

Don’t wait until you need recovery to find out it’s broken. Do a quick health check:

  • Confirm Windows Recovery Environment (WinRE) is enabled:
  • Open Command Prompt as admin
  • Run: reagentc /info
  • Look for “Windows RE status: Enabled” and a valid Windows RE location
  • Test “Reset this PC” workflow non-destructively:
  • Settings > System > Recovery
  • Click Reset this PC (don’t proceed with the final confirmation)
  • Ensure the wizard opens without error and offers “Keep my files” / “Remove everything”
  • Check Update-based repair:
  • Settings > System > Troubleshoot > Other troubleshooters > Windows Update
  • Or “Fix problems using Windows Update” under Recovery options
  • Create a manual restore point:
  • Search for “Create a restore point” and choose Create
  • For managed devices:
  • Validate RemoteWipe/Remote Reset actions in your MDM (e.g., Intune)
  • Review device-side event logs if a previous wipe failed

Docs to keep handy: – Recovery options in Windows – Windows RE technical reference – Remote wipe actions (MDM/RemoteActions CSP)

If You Still See Error 0x8007007F on Windows 11, Do This

Microsoft says devices upgraded after August 15 should no longer hit error 0x8007007F. If you still do, try this:

  • Retry the update. Many devices succeed after the server-side fix.
  • Free up disk space (aim for 20 GB free).
  • Temporarily disable third‑party antivirus or security software.
  • Run the Windows Update troubleshooter:
  • Settings > System > Troubleshoot > Other troubleshooters > Windows Update
  • Run quick health repairs (admin Command Prompt):
  • sfc /scannow
  • DISM /Online /Cleanup-Image /RestoreHealth
  • Reset Windows Update components if needed:
  • Stop services: net stop wuauserv and net stop bits
  • Rename cache folders:
    • ren %systemroot%\SoftwareDistribution SoftwareDistribution.old
    • ren %systemroot%\System32\catroot2 catroot2.old
  • Start services: net start wuauserv and net start bits
  • Try updating again.

Still stuck? Use the Windows Update troubleshooter and check release-health advisories for any region‑specific rollout issues:
– Windows release health

For IT Admins: Practical Steps to Stabilize Your Patch Process

When a patch breaks recovery, it’s a reminder to harden your update practice. A few targeted actions can save a lot of pain next time.

  • Reinforce staged rings and gradual rollout
  • Deploy cumulative updates to pilot rings first
  • Require 24–72 hours of signal before broad deployment
  • Leverage Known Issue Rollback (KIR) where applicable
  • KIR can mitigate specific non‑security regressions via policy without uninstalling the update
  • Learn more: Known Issue Rollback
  • Validate WinRE presence and state fleet‑wide
  • Query reagentc /info status with a script and log results
  • Ensure recovery partitions haven’t been removed or shrunk below WinRE requirements
  • Test device reset and remote wipe in each management context
  • Intune/MDM wipe and Autopilot reset scenarios
  • Local reset with and without cloud download
  • Keep a rollback path
  • Maintain recent system images for critical endpoints
  • Document the process for uninstalling a problematic cumulative update via recovery if devices won’t boot
  • Catalog/WSUS/Intune hygiene
  • Approve OOB updates for impacted rings only
  • Clearly label OOB updates in deployment plans
  • Monitor failure rates via Update Compliance/Intune reports
  • Communication is a feature
  • Brief helpdesk with symptoms, fixes, and talking points
  • Proactively notify users in pilot rings about what to expect

Small but critical detail: verify Windows RE is enabled post-update. If WinRE is disabled (status shows “Disabled”), re-enable it with reagentc /enable and confirm the WinRE image path is valid. If the recovery partition is missing or too small, you may need to adjust partitioning standards in your image engineering.

Why Reset and Recovery Matter More Than You Think

Reset and recovery are like airbags for your PC fleet. You hope you never need them—but when you do, they must work perfectly. Here’s why that matters:

  • Faster recovery: “Reset this PC” can salvage a broken system without a full rebuild.
  • Safer decommissioning: Remote wipe and reset protect data during device turnover.
  • Lower support costs: Recovery tools reduce helpdesk escalations and rebuild time.
  • Security resilience: A healthy WinRE gives you options when malware or corruption strikes.

When a monthly cumulative update disables those tools, it directly increases operational risk. Installing the OOB fix if you’re impacted is a smart move.

Security Context: August Was a Big Patch

It’s worth noting the August 2025 Patch Tuesday wasn’t light. Microsoft fixed 107 vulnerabilities across Windows, Exchange, and SharePoint, including several critical issues. Exchange Server users also saw updates to Extended Security Updates (ESU) policy.

If you held off because of the reset/upgrade issues, now’s a good time to move forward with patching, with the OOB update applied as needed. Always prioritize critical security fixes to reduce exposure.

For details and CVE breakdowns, check: – Microsoft Security Update Guide

Quick Checklist: What You Should Do Next

  • If reset/recovery failed or you rely on them:
  • Install the optional OOB update KV5066189 (August 19)
  • Verify WinRE is enabled: reagentc /info
  • Test the “Reset this PC” wizard opens cleanly
  • If your Windows 11 upgrade failed with 0x8007007F:
  • Retry the update now that Microsoft has resolved it
  • If it still fails, run SFC/DISM and the Windows Update troubleshooter
  • For IT admins:
  • Approve/deploy KV5066189 to affected rings
  • Audit WinRE status across devices
  • Rehearse remote wipe/reset scenarios post-fix
  • Reinforce ring-based deployments and KIR readiness
  • Keep up with official guidance:
  • Windows release health
  • Microsoft Update Catalog

Troubleshooting Tips If Reset Still Fails

If you installed KV5066189 but “Reset this PC” still doesn’t work:

  • Check WinRE status: reagentc /info
  • If Disabled, run: reagentc /enable
  • Ensure the recovery partition exists and is large enough (WinRE requires adequate space for the RE image)
  • Try “Cloud download” option within Reset this PC (downloads a fresh copy of Windows)
  • Run system health repairs:
  • sfc /scannow
  • DISM /Online /Cleanup-Image /RestoreHealth
  • Make sure there’s no third‑party encryption or security agent blocking reset
  • Consult Microsoft’s support doc on recovery options:
  • Recovery options in Windows

If you’re still stuck, consider an in‑place repair install using the latest ISO or Installation Assistant for your version. You can source media from the Download Windows page or through Volume Licensing Service Center for enterprise media.

Frequently Asked Questions

Q: Do I need to install the August 19 OOB update (KV5066189)?
A: Install it if you’ve experienced broken reset/recovery or rely on these tools. It’s optional. If you’re not impacted and don’t plan to use reset soon, you can wait for the fix to roll into the next monthly cumulative update.

Q: Is error 0x8007007F fixed?
A: Yes. Microsoft resolved it as of August 15, 2025, without a separate patch. Retry the update—most devices will complete successfully now. If it persists, run the Windows Update troubleshooter and SFC/DISM, then try again.

Q: Are Windows Server editions affected by the reset/recovery bug?
A: Microsoft said no server products were affected by the reset/recovery failures. However, some server versions (Windows Server 2022/2019) were impacted by the 0x8007007F upgrade error, which is now resolved.

Q: How do I check whether Windows Recovery Environment (WinRE) is enabled?
A: Open Command Prompt as admin and run reagentc /info. If it shows “Windows RE status: Enabled,” you’re good. If it’s disabled, try reagentc /enable.

Q: Will installing KV5066189 remove the earlier August updates?
A: No. It replaces the earlier August rollups with a corrected cumulative package. You keep the security fixes while gaining the reset/recovery fix.

Q: Where can I get the OOB update if it doesn’t show in Windows Update?
A: Download it from the Microsoft Update Catalog and install it manually, or import it into WSUS/Intune for deployment.

Q: I don’t use “Reset this PC.” Can I skip the OOB update?
A: Yes, if you’re not affected and don’t plan to use reset/recovery or remote wipe, you can skip it.

Q: How do I know which Windows version I’m on?
A: Go to Settings > System > About. Look under “Windows specifications” for Edition and Version (e.g., 22H2 or 23H2).

Q: Is there any impact on Windows 11 24H2 or Windows Server 2025?
A: Microsoft noted these were not affected by the 0x8007007F issue. The reset/recovery issue applied to Windows 11 22H2/23H2 and Windows 10 22H2 (including some LTSC editions).

Q: What if “Reset this PC” still fails after the OOB update?
A: Verify WinRE is enabled, run SFC/DISM, ensure recovery partition health, and try Cloud download. If it’s still failing, consider an in‑place repair install and check Microsoft’s release health for any new guidance.

The Bottom Line

Microsoft broke two important things in August—then fixed them quickly. If reset and recovery failed on your Windows 10/11 devices, install the optional August 19 OOB update (KV5066189) and verify WinRE is enabled. If your Windows 11 upgrade failed with 0x8007007F, retry after Microsoft’s server‑side fix. Most devices should now update cleanly.

Actionable next steps: – Apply KV5066189 where recovery matters – Verify “Reset this PC” and WinRE status – Retry Windows 11 updates if you hit 0x8007007F – Reinforce ring-based rollouts and KIR readiness in your patch strategy

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InnoVirtuoso

Hello there! I'm passionate content writer navigating the digital landscape. With a deep love for words and an insatiable curiosity about technology.

With 10 years of experience in IT field, I write mostly about emerging tech, sharing news, informational articles and covering other topics I find interesting.

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