Windows 365 October 2026 Update Brings Major Cloud PC Upgrades and New Security Features

Microsoft has detailed all the new features and improvements that it rolled out for Windows 365 and Azure Virtual Desktop as part of the October 2026 update. The latest changes improve remote desktop connectivity, simplify Cloud PC management, and introduce new security controls. There is also a useful update for organizations looking to reduce unused Cloud PC resources.

Windows 365 gets better connectivity and session continuity

One of the highlights from last month’s update is the Remote Desktop Protocol (RDP) connectivity. RDP Multipath and RDP Shortpath with TURN relay are now generally available in Azure Government.

RDP Multipath maintains multiple network paths and automatically switches when connectivity changes. Meanwhile, RDP Shortpath uses TURN relay to provide UDP connectivity when a direct connection isn’t possible. In short, these features should reduce interruptions during remote work.

In addition, Windows 365 Flex is also getting a useful upgrade. Session State Retention is now generally available for eligible dedicated Cloud PCs. Instead of shutting down immediately after disconnection, these Cloud PCs can hibernate after a configured idle period. Users can then reconnect and resume their work with applications left as they were. Combined with Intelligent Pre-start, this should make returning to a Cloud PC considerably smoother.

Microsoft expands security and Cloud PC management

Security is another major focus of Microsoft’s October roundup. Windows App now generally supports external identities on iOS. This means contractors, vendors, and partners can access Cloud PCs using iPhones and iPads.

Azure Virtual Desktop is also getting managed identity support for host pools. This allows administrators to assign individual identities and control the permissions each host pool receives. Meanwhile, context-based redirections are entering preview for RemoteApp sessions. IT administrators can control clipboard, printer, drive, and USB access based on Microsoft Entra Conditional Access conditions.

Windows 365 Reserve gets automatic cleanup

Microsoft has introduced Windows 365 Reserve auto-deprovisioning in public preview. Administrators can automatically remove provisioned Reserve Cloud PCs that remain unused beyond a configured threshold. More importantly, remaining access days are preserved. Users must reprovision their Cloud PCs before using them again.

Other changes include bulk deprovisioning, flexible Intune targeting, default display settings, and Windows 11 version 26H2 images for new Cloud PCs and Azure Virtual Desktop session hosts.