Microsoft confirms Remote Desktop issues in Windows Server KB5040437 update

The recent Windows Server 2022 KB5040437 update has caused several issues for IT admins. According to the Redmond giant, this issue impacts Remote Desktop capabilities. The problem appears sporadic and might occur in organizations utilizing a legacy protocol within the Remote Desktop Gateway called RPC over HTTP.

Systems might sometimes lose the connection and require users to reconnect to the server. Microsoft has given a few temporary solutions for IT admins to handle this issue.

The initial solution is not allowing connections over pipe and port \pipe\RpcProxy\3388 via the Remote Desktop Gateway. This procedure necessitates using connection applications, like firewall software. It is suggested that admins refer to their connection and firewall software’s documentation for details on disallowing and porting connections.

The following solution involves removing a key linked to RDGClientTransport from the registry of client devices.

Option 1: Disallow connections over pipe, and port \pipe\RpcProxy\3388 through the RD Gateway. This process will require the use of connection applications, such as firewall software. Consult the documentation for your connection and firewall software for guidance on disallowing and porting connections.

​​​​​​​Option 2: Edit the registry of client devices, by removing a key related to RDGClientTransport

Important: This article contains information about how to modify the registry. Make sure that you back up the registry before you modify it. Make sure that you know how to restore the registry if a problem occurs. For more information about how to back up, restore, and modify the registry, see How to back up and restore the registry in Windows .

Open the Windows Registry Editor and navigate to the following registry location:
HKCU\Software\Microsoft\Terminal Server Client\RDGClientTransport

Find the registry key titled ‘DWORD’ and set the ‘Value Data’ field to ‘0x0’.

Microsoft has acknowledged that this issue is not exclusive to Windows Server 2022 but can also impact versions such as Windows Server 2019, 2016, 2012, and 2012 R2. They are presently developing a patch to solve this problem; however, there is no information on when it will be ready for use.

Also, we have Microsoft’s official explanation for the Remote Desktop issue. Windows systems might enter BitLocker recovery mode after installing these July 2024 Patch Tuesday updates. The company has mentioned they’re looking into it and will offer an update in one of their subsequent releases. To learn more about confirmed issues in Windows Server KB5040437, see Microsoft’s support page here.