It was determined that after installing the January 2026 Windows security update (KB5074109), credential prompt failures occurred during Remote Desktop connections using the Windows App on Windows client devices.
If you were affected by this issue, currently the fix is to install the out-of-band (OOB) patch that was recently released by Microsoft (KB5077744).
To do so, access the Microsoft Update Catalog using the link below.
Microsoft Update Catalog website KB5077744
You will need to first determine the current version of Windows 11 that is installed on your device.
To do this, follow the below steps:
Right click on the Start button and select “System”

Once the System About windows comes up, scroll down to the “Windows specifications” section
Here take note of the Windows 11 version currently installed

Once you have noted the currently installed version of Windows 11, you can refer to the download results from the Microsoft Catalog, previously referenced. Match the version number and the x64 option in the left column. Then click the appropriate Download button on the right.

Note that if you are running Windows 11 version 23H2, you will need to install the patch from the corresponding KB5077797 location.
Once the file is downloaded, you can run the install from your Downloads folder. Accept the prompts as requested. It may take some time for this update to install. Once completed, it will require a restart of the device.
If you are unable to deploy the patch at this time, a short term workaround is to access the Cloud Desktop Web Portal using the link below: