Why is Windows 11 24H2 KB5063878 Update Fails with Error 0x80240069 and How to Fix It?

A recent Windows 11 24H2 update, KB5063878, is causing installation problems for some users, particularly those in managed enterprise environments using Windows Server Update Services (WSUS) and System Center Configuration Manager (SCCM).

The update, released on August 12, 2025, is a mandatory security update containing important quality improvements and security patches. However, many system administrators have reported that the installation fails, displaying the error code 0x80240069.

This is not a new issue; a similar problem occurred in April 2025 and was later resolved by Microsoft. It appears the bug has resurfaced in the August 2025 update cycle. The problem often affects not only the main cumulative update but also the Malicious Software Removal Tool (KB890830), which fails with the same error code.

What Happens When the Update Fails

When this update fails, you might see these problems:

• Download stops at 4% or 6% and never moves forward
• Error message shows “Download Error – 0x80240069” in WSUS or Software Center
• Windows Update service stops unexpectedly and restarts after one minute
• Screen turns black or gray after logging in
• Desktop takes 10-20 minutes to appear after login

Understanding the Error

When the update fails, it typically shows as a “Download error” in the WSUS, SCCM, or Software Center interface. A closer look at the system’s Event Viewer logs reveals more specific details about the failure.

Service Control Manager ID 7031

This log entry indicates that the “Windows Update service has unexpectedly stopped”. The system usually attempts to restart the service automatically after a short period.

ID 7031
The Windows Update service has unexpectedly stopped. This has happened once before. The following corrective measures will be taken in 60000 milliseconds: Restart the service.

Application Fault

The application event log may show a faulting application svchost.exe_wuauserv and faulting module ntdll.dll, with an exception code of 0xc0000005. This points to a crash within the Windows Update service itself.

Trace Log Error

Another related error is 0xC0000035, which occurs when starting the WindowsUpdate_trace_log session. This error code translates to STATUS_OBJECT_NAME_NOT_FOUND, suggesting that the system cannot find the necessary registry entries for an event tracing session. This missing component seems to cause the Windows Update service (wuauserv) to crash during the update scan or download process.

ID2
The following error occurred when starting the WindowsUpdate_trace_log session: 0xC0000035.

Beyond the primary installation failure, users have reported other issues associated with the KB5063878 update:

• Downloads getting stuck at a low percentage, such as 4% or 6%.
• The update reaching 100% completion, only to fail and reverse the changes.
• Brief black or grey screens appearing after logging in.
• The desktop and background taking an unusually long time, sometimes 10 to 20 minutes, to appear.

How to Fix the Installation Failure

While Microsoft has not yet officially documented the issue for the August 2025 update, there are workarounds that have proven successful for many administrators. The primary solution involves a registry modification to bypass a buggy feature in the update.

This method requires modifying the Windows Registry. You can do this by creating a .reg file or by using a PowerShell script.

Using a .reg File

1. Open a plain text editor like Notepad.
2. Copy and paste the following text into the editor:

   Windows Registry Editor Version 5.00
   [HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\FeatureManagement\Overrides\8\3000950414]
   "EnabledState"=dword:00000001
   "EnabledStateOptions"=dword:00000000
   "Variant"=dword:00000000
   "VariantPayload"=dword:00000000

3. Save the file with a .reg extension (e.g., fix.reg).
4. Right-click the saved file, select “Merge,” and approve the changes.
5. Reboot the computer for the changes to take effect.

Using a PowerShell Script

For administrators needing to apply the fix across multiple computers, the following PowerShell script can be used:

New-Item -Path "HKLM:\SYSTEM\CurrentControlSet\Control\FeatureManagement\Overrides\8" -Name "3000950414" -Force | Out-Null
New-ItemProperty -Path "HKLM:\SYSTEM\CurrentControlSet\Control\FeatureManagement\Overrides\8\3000950414" -Name "EnabledState" -PropertyType DWord -Value 1 -Force | Out-Null
New-ItemProperty -Path "HKLM:\SYSTEM\CurrentControlSet\Control\FeatureManagement\Overrides\8\3000950414" -Name "EnabledStateOptions" -PropertyType DWord -Value 0 -Force | Out-Null
New-ItemProperty -Path "HKLM:\SYSTEM\CurrentControlSet\Control\FeatureManagement\Overrides\8\3000950414" -Name "Variant" -PropertyType DWord -Value 0 -Force | Out-Null
New-ItemProperty -Path "HKLM:\SYSTEM\CurrentControlSet\Control\FeatureManagement\Overrides\8\3000950414" -Name "VariantPayload" -PropertyType DWord -Value 0 -Force | Out-Null

This script creates the necessary registry key and sets the values to bypass the problematic logic, allowing the Windows Update service to run without crashing.

Manual Installation

An alternative workaround that does not involve modifying the registry is to manually download and install the update from the Microsoft Update Catalog. This method bypasses the WSUS/SCCM delivery mechanism that appears to trigger the error. For some users, this has been a successful way to install the update without encountering the 0x80240069 error.

WSUS Import Method

For IT administrators managing updates through WSUS, you can manually import the update using these IDs:

• WSUS Sync: Update-ID 8018eab0-7242-4932-adf2-afda36f6b3f6
• Update Catalog Import: Update-ID 92061378-be93-4659-a72a-037225e6bb0f

What to Watch Out For

False Error Messages

Microsoft confirmed that Event Viewer now shows a fake error about “Microsoft Pluton Cryptographic Provider”. This error appears every time you restart your computer, but Microsoft says you can safely ignore it. The company is working on a fix for this confusing error message.

Performance Issues Fixed

The good news is that KB5063878 actually fixes performance problems that started after May 2025 updates. Some users noticed lower frame rates in games like Fortnite, but this update should improve overall system performance.

When Will Microsoft Fix This Permanently?

Microsoft hasn’t announced an official timeline for fixing the underlying problem. Based on past issues, the company typically releases a permanent fix within a few weeks. Until then, the registry workaround provides a reliable solution.

The registry changes are temporary overrides that you can remove once Microsoft releases a proper fix. Keep track of any systems where you applied this workaround so you can clean up later.

This update problem mainly affects business environments using WSUS or SCCM for managing updates. Home users typically won’t encounter this issue since they get updates directly from Microsoft’s servers rather than through corporate update systems.