Microsoft has released an out-of-band update to address a known issue causing some Windows 11 systems to enter recovery and fail to start after installing the KB5058405 May 2025 security update.

Users on the affected computers see 0xc0000098 recovery errors in ACPI.sys (the Windows Advanced Configuration and Power Interface driver, a Windows kernel-mode driver critical for power management and device configuration), warning them that the device must be repaired because the operating system couldn’t be loaded.

As Microsoft revealed when it acknowledged the issue on Thursday, this known issue affects Windows 11 22H2/23H2 systems in enterprise environments and mainly impacts Azure Virtual Machines, Azure Virtual Desktop, and on-premises virtual machines hosted on Citrix or Hyper-V.

“We are investigating reports of the May 13, 2025 Windows security update (KB5058405) failing to install on some Windows 11, version 22H2 and 23H2 devices,” the company said when it acknowledged the issue on Thursday. 

​Redmond added that PCs running Windows Home or Pro editions in home environments are unlikely to face these issues because the impacted virtual machines are mostly used in IT environments.

Emergency update available via Microsoft Update Catalog

Over the weekend, the company released the KB5062170 non-security out-of-band update to mitigate these installation and boot problems, which can be installed manually using the standalone MSU packages from the Microsoft Update Catalog.

“We recommend using Azure Virtual Machine repair commands as a workaround for Azure customers who have already applied the May 2025 Windows security update and are experiencing this issue,” the company noted in a Saturday update to the Windows release health dashboard.

“If you have not yet deployed the May 2025 Windows security update (KB5058405) and your environment includes devices running in a virtual desktop infrastructure on Windows 11, versions 22H2 and 23H2, we recommend you apply the OOB update instead.”

In April, Microsoft addressed a “latent code issue” causing some systems to be upgraded to Windows 11 automatically despite Intune policies set up to block Windows 11 upgrades.

Microsoft also fixed a known issue blocking Windows 11 24H2 feature updates via Windows Server Update Services (WSUS) after deploying the April 2025 security updates.

Earlier this month, it shipped another round of emergency out-of-band updates to mitigate a Windows 10 bug forcing PCs into BitLocker recovery after installing the May 2025 security updates.