Microsoft has fixed a known issue causing restart loops and taskbar problems on Windows 11 systems after installing the June KB5039302 preview update.

“This issue was resolved in updates released July 9, 2024 (KB5040442) and later,” the company said in an update added to the Windows release health page on Tuesday.

“We recommend you install the latest security update for your device. It contains important improvements and issue resolutions, including this one.”

The known issue only impacts systems running Windows 11 23H2 and Windows 11 22H2, with users of Windows Home edition less likely to experience it because virtualization is less common in home environments.

This fix comes after Redmond was forced to pull the update on June 27 after reports that it was causing some Windows devices to restart repeatedly while others failed to start altogether.

Microsoft said the issue impacts devices utilizing virtual machine tools and virtualization features, including CloudPC, DevBox, and Azure Virtual Desktop, while some users also reported that the bug also affects VMware VMs.

The same update also causes the taskbar to freeze or stop displaying correctly on systems running the Windows N edition or with the ‘Media Features’ feature turned off.

The company resumed the KB5039302 rollout days later, blocking the update only for Windows customers using virtualization software.

“Availability of this update via Windows Update and Windows Update for Business was paused for a couple of days, but is being resumed today for most devices,” Redmond said in a message center update.

“This update offering is now paused only for devices affected by the issue. As a result, this update might not be offered to Hyper-V virtual machines running on hosts that utilize certain processor types.”

Last month, it removed a Copilot app that was “incorrectly” added to Windows 10/11 systems in April because of a buggy Microsoft Edge update.

One month earlier, in May, it pushed an emergency fix for Windows Server 2019 update errors caused by the 2024 Patch Tuesday security updates.