KB4480970 breaking Local Network access?

I have a Windows 7 laptop that is shared on my local network (Workgroup) that is easily accessed through any computer in the house (most of them being Windows 10 or through Android) through the regular network file sharing and Remote Desktop. For Remote Desktop, I made sure to click the setting: "Allows connections only from computers running Remote Desktop with Network Level Authentication (more secure)".


However, yesterday, upon installing KB4480970, none of the computers can access the Windows 7 computer through the regular network file sharing or Remote Desktop. For Network sharing, the error on Windows 10 computers is "The handle is invalid", and for Remote Desktop, it said "The local security authority cannot be contacted. This might be due to an expired password." with an error code of 0x207 (for Android Remote Desktop). Even when I changed the password, or reinstalled the Ethernet driver, the same errors occurred, but upon uninstalling KB4480970, things went back to normal. Anyone know what this update changes to make it so local network connections to a Windows 7 computer no longer works?

Looks like it's a known issue:


Patch Tuesday updates for Win7, KB 4480970 and KB 4480960 knock out networking | Computerworld


Hopefully Microsoft will be able to fix it soon.

This happened to me also...Unknown handle error etc. Luckily there was one reference to the issue I found and uninstalling KB4480970 solved it for me.
only one of three machines auto updates so I knew were the problem must be.

I can confirm I noticed the RDP portion of the issue today when connecting to a clean 2008R2 SP1 server via RDP. The exact same error message. I tested from multiple different RDP clients (other 2008 servers and multiple patched windows 10 clients) and got the same error.

Disabling NLA authentication also makes the issue go away.

Perhaps that's the underlying mechanism at fault for all of this?

I'll uninstall the patch if need be. Having NLA broken really defeats its purpose and I don't want to leave it disabled.

PJ

for me it was a win 7 machine I keep in the basement for security cameras and file sharing. No secpol installed so uninstall was easiest. I may install it and go that route, but I am just very happy to have figured it out in only a couple hours.

We had a client who was accessing software through a shared drive who could no longer do so after tuesdays updates.
Removing the KB4480970 update made everything work again, thanks!

Paul Black said:

Hi NetworkMonkey,

Welcome to SevenForums!



Out of interest, did you uninstall the KB4480970 update the conventional way, through Uninstall a program, or did you use wusa run from an elevated command prompt?

I uninstalled it through the programs/ features > view installed updates. Did a restart once it was finished and bam- everything was back to normal

Access Denied

Cause:
Microsoft Hotfix KB4480970 is the problem.

Solutions:
I did validate myself these solutions when I had the problem this morning. And they worked. I like to share with you.

1. Create another user and give the access/permission to the share. I can access the share no problem without that error.

2. On the Win 7 share workstation, start Command Prompt window (elevated to Administrator right), enter this command
reg add HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\Policies\system /v LocalAccountTokenFilterPolicy /t REG_DWORD /d 1 /f

Reboot the machine and you can continue to use the user who belongs to Administrator group as before. I like to use this solution so I can use my favorite ID as before

3. Uninstall the hotfixes and patches. I do not recommend this.