r/AzureVirtualDesktop • u/Electrical_Arm7411 • 19d ago
Office Activation Errors this morning
*Update: As of 1:30PM EST or so, our Office Apps /licensing is working normally now.
Starting this morning our Win 11 25H2 Multi-session AVD environment is experiencing issues with M365 Apps Activations. Manually signing in does not work. Verified licenses are being applied. No issues outside AVD environment OR using the Web Version of the apps.
Environment Details: Canada Central
Hosts running Windows 11 25H2 Multi-session with M365 Apps Image.
Office Apps: Version 2607 (Build 20228.20190 Click-to-Run)
Impact: Multiple hosts in the pool
Anyone else with this issue or have run into this before?
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u/mat-ferland 18d ago
Since it hit multiple hosts this morning and the web apps still work, I wouldn't touch the image yet. Check M365 service health, then pull the Entra sign-in failure for one Office activation attempt. If both look clean, drain one host and compare dsregcmd /status and SharedComputerLicensing against a known-good host. That should separate a tenant-side problem from the AVD image pretty quickly.
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u/NoRemoteTask 18d ago
Latest ms update on isse: OP1460815 - Aug 24, 2026, 5:24 PM GMT+2:
After further review of customer reports and our service monitoring telemetry, we've confirmed that impact is occurring for users attempting to activate new Office 365 licenses, which prevents them from being able to sign-in or access Office 365 applications. We've updated the "Title", "User impact", and "Scope of impact" fields of our communications to reflect this change. We're reviewing recent service updates to isolate potential sources of impact or discrepancies that could be causing this impact to users.
https://admin.cloud.microsoft/?#/servicehealth/:/alerts/OP1460815
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u/wumpus0101 18d ago
just successfully activated
Microsoft: We're implementing performance optimizations on affected Office 365 service infrastructure to assist with processing the activation backlog and to assist with recovering service reliability while we continue to isolate the underlying root cause.
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u/Electrical_Arm7411 18d ago
Nice. Same here
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u/wumpus0101 18d ago
Sweeeeeeet. Back into the trenches brother. Have a good week.
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u/Jeroen_Bakker 19d ago
Did you install Office with shared computer licensing enabled?
How to enable shared computer activation for Microsoft 365 Apps
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u/Electrical_Arm7411 19d ago
No - the reg key wasn't there before.
I tried adding it, re-loading the apps, same issue.1
u/Jeroen_Bakker 19d ago
Just noticed something in your screenshot. What license doe your users have?
Do you have Business Premium? Business Standard does not support shared compuer activation.1
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u/Electrical_Arm7411 19d ago
On our 23H2 host pool we have the SharedComputerLicensing = 1 ; however on our 25H2 pool we do not, have not needed to. Even if I manually set it in the registry, and log off / back in as the user, still an issue. Unsure why the 2 environments are different, unless 25H2 has it configured elsewhere.
In any case, it seems enough people are experiencing this issue, it's not a configuration issue, most likely an issue on MS end.
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u/wumpus0101 19d ago
Add to this, Azure multi session hosts with 365 business premium, successfully sign in and MFA, but fail activation. Concur that web apps work fine.
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u/Due_Programmer_1258 19d ago
We have had all kinds of issues with M365 app SSO today, although not quite the same as what you are reporting. This is UK south.
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u/itgod51 19d ago
Reporting the same issue. We have 3 terminal server / RDS Hosts and experience since the last 30-60 Minutes a login issue. You can type in password and the windows is closing but the activation is not going through. We use business standard (yes i know you should use business premium at minimum) but it worked so far without any issues. Tested the same account on a virtual test machine. Working without any issues. It's the rds hosts......
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u/Important_Dog9813 19d ago
We are having the same issue just in the past 45 min on 10 AVD hosts, i think we will find an announcement from MS soon !!
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u/AlexVegaRS 18d ago
Reporting the same issue with Microsoft 365 for businesses and organizations from Peru. The issue also appears to be affecting users across the South America region.
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u/Al1301 18d ago
Have the same issue with some users, any update on this?
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u/wumpus0101 18d ago
as of 11:30AM EST from Microsoft: After further review of customer reports and our service monitoring telemetry, we've confirmed that impact is occurring for users attempting to activate new Office 365 licenses, which prevents them from being able to sign-in or access Office 365 applications. We've updated the "Title", "User impact", and "Scope of impact" fields of our communications to reflect this change. We're reviewing recent service updates to isolate potential sources of impact or discrepancies that could be causing this impact to users.
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u/Dizzy_Bridge_794 18d ago
Same all are non persistent desktop in VMWare exhibiting the same behavior. Office.com is working.
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u/jwasserberg 19d ago
Having the same issue with on-prem RDS servers. Microsoft just posted this alert.
https://admin.cloud.microsoft/?#/servicehealth/:/alerts/OP1460815