Microsoft may soon use AI effects on Windows 11 desktop backgrounds
Microsoft Windows 11 January 2026 causes bugs, Microsoft and NVIDIA roll out fixes YouTube

An urgent Windows January 2026 update has been the source of performance issues, resulting in GPU slowdowns in intensive apps and gaming, particularly for NVIDIA GeForce graphics card users, but Microsoft moved swiftly with emergency fixes.

Windows Latest reported the three issues Microsoft has officially admitted to in the January 2026 Windows 11 update:

  1. Remote Desktop Connections failing (bug);
  2. Windows 11 23H2 would not shut down (bug); and
  3. Outlook Classic crashing (bug).

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Of the three, failing remote desktop connections and Windows 11 23H2 not shutting down have both been fixed, while Windows continues to look into Outlook Classic crashing.

Three Microsoft-Confirmed Issues

According to the report, some users who installed Windows 11 KB5074109 (25H2) and were using Remote Desktop connections from the 'Windows app' reported sign-in failures, after clicking 'Connect,' with an authentication failure and a rejected connection. Data was reportedly unaffected as the error occurred before a session was created.

The second issue is exclusive to Windows 11 23H2, where a number of computers running System Guard Secure Launch were unable to shut down as usual or enter hibernation mode after installing Windows 11 KB5073455 (23H2). Windows initiates a power transition when the Shut Down or Hibernate options are clicked, but merely reboots afterwards.

Microsoft rolled out an off-cycle update, a type of update offered only via the Microsoft Update Catalogue for the .msi installer, for all Windows versions affected by the issue, including Server and Windows 10, on 17 January 2026.

A third bug, also confirmed by Microsoft, was causing Microsoft Outlook Classic to crash, particularly for POP accounts, and the January 2026 update could trigger it. A temporary fix could be killing the process in Task Manager, but doing so would only prompt users to start it again.

Windows has identified issues such as a black screen that appears after loading the app, a black desktop background that defaults once MS Outlook Classic is launched, and the File Explorer desktop.ini feature stops working altogether.

Emergency Fixes Follow Patch Issues

The Windows update released this month caused issues with patches that affected PCs running Windows 11 (24H2 and 25H2). Early reports from some users affected by the issue included frame rate drops, with gaming performance reportedly reduced by up to 15-20 frames per second (FPS) in some game titles. Further issues include a black screen and driver crashes on systems with dedicated NVIDIA GPUs, per a Maombi report.

One quick solution to the bugs involved uninstalling the Windows KB5074109 update, as simple as navigating to Settings, or going to the Windows Recovery Environment (WinRE) to delete recent updates, which would ideally include the Windows KB5074109 update.

NVIDIA has also stepped in to offer a hotfix for the reduced performance linked to the Windows KB5074109 update. The emergency GeForce Hotfix Display Driver 581.94 supposedly fixes the issue by restoring performance levels. In a Tom's Hardware report, NVIDIA claims the bug only affects a few game titles, but it appears more serious than that, as evidenced by its hotfix release.

The GPU performance issue is not a first for a Windows update. Microsoft's mandatory updates are usually aimed at security and stability enhancements, but often lead to unforeseen, complex issues that users are left to resolve.