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Windows 11 23H2 to 25H2 Upgrade Allegedly Breaking Internet Connectivity

A bug in Windows 11 in-place upgrades is causing the removal of critical 802.1X wired authentication configurations, leading to enterprise workstations being offline until manual intervention is performed.

NBy Natalie RhodesMar 04, 20261 min read

A bug in Windows 11 in-place upgrades is causing the removal of critical 802.1X wired authentication configurations, leading to enterprise workstations being offline until manual intervention is performed.

During a Windows 11 upgrade, the contents of the C:\Windows\dot3svc\Policies folder, which stores 802.1X wired network authentication profiles applied via Group Policy, are deleted. The dot3svc service (Wired AutoConfig) relies on these files for authenticating machines against network switches using IEEE 802.1X port-based access control. Once the folder is wiped, the upgraded machine loses all wired network connectivity, effectively disconnecting it from the corporate network.

This issue persists across Windows 11 version upgrades, including 23H2-to-24H2 and 23H2-to-25H2 upgrade paths. The problem is exacerbated by the fact that without network access, the machine cannot receive a fresh Group Policy push to restore its 802.1X configuration.

In some cases, the issue extends to the machine's computer certificate store, further complicating authentication for organizations using EAP-TLS with PKI certificates.

Once the folder is wiped, the upgraded machine loses all wired network connectivity, effectively disconnecting it from the corporate network.
Natalie Rhodes · Thehackingpost

Administrators have identified several workarounds while awaiting an official fix:

Backup and restore : Copy C:\Windows\dot3svc\Policies to external storage before upgrading and restore it after the new OS boots. Post-upgrade gpupdate : Connect the device to a non-dot1x port and run gpupdate /force /target:computer to force policy re-application. SetupCompleteTemplate.cmd : Use the Windows setup completion script to restore LAN profiles. MECM task sequence step : For managed deployments, add a post-upgrade step to re-push 802.1X settings before the device rejoins the secured network.

Microsoft has not yet acknowledged this regression as a known issue on its Windows 11 release health dashboard, and no dedicated KB article or hotfix has been issued.

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Administrators managing large deployments should audit their upgrade workflows and implement policy backup steps before deploying Windows 11 24H2 or 25H2 widely.

Based on reporting by Cyber Security News.

AI transparency. This article was produced with the assistance of artificial intelligence and published under human editorial oversight. AI systems can make mistakes. Read how we use AI (EU AI Act, Art. 50).
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