Windows KB4480960 & KB4480970 Updates Causing Network and License Problems

On January 8th, Microsoft released the KB4480960 and KB4480970 updates for Windows 7 SP1 and Windows Server 2008 R2 SP1, which have been causing networking and licensing havok for users and organizations that have installed them.

Ever since the updates came out for the January 2019 Patch Tuesday rollout, numerous threads on Reddit have been created where users complain about their license becoming deactivated or not being able to connect to network shares.

To warn users, Microsoft has added the following information to the bulletins for KB4480960 and KB4480970:


KMS Activation error after installing updates

After installing these updates, users are receiving messages on enterprise versions of Windows 7 that show KMS Activation errors, that their licenses are not “Not Genuine”, or the error code 0xc004f200.

Woody Leonhard reported that this is being caused by an an older KB971033 update that is conflicting with the newer updates. It seems with the release of KB4480960 and KB4480970, there has been a conflict that is causing activation errors for Key Management Services (KMS) controlled workstations.

Reddit post states that users can enter the following commands to uninstall KB971033 and reactivate the workstation via KMS.

wusa /uninstall /kb:971033 /quiet
net stop sppsvc /y
del %windir%system327B296FB0-376B-497e-B012-9C450E1B7327-5P-0.C7483456-A289-439d-8115-601632D005A0 /ah
del %windir%system327B296FB0-376B-497e-B012-9C450E1B7327-5P-1.C7483456-A289-439d-8115-601632D005A0 /ah
del %windir%ServiceProfilesNetworkServiceAppDataRoamingMicrosoftSoftwareProtectionPlatformtokens.dat
del %windir%ServiceProfilesNetworkServiceAppDataRoamingMicrosoftSoftwareProtectionPlatformcachecache.dat
net start sppsvc
cscript %windir%system32slmgr.vbs /ipk 33PXH-7Y6KF-2VJC9-XBBR8-HVTHH
cscript %windir%system32slmgr.vbs /ato
taskkill /IM slui.exe

Cannot connect to network shares or networking issues

Borncity is also reporting that users who install these updates are having issues connecting to Windows 7 or Windows Server 2008 shares, accessing computer’s over Remote Desktop, or connecting to SQL servers. 

BleepingComputer was also told this is affecting connections made through PowerShell on non-administrator accounts.

According to Andy of administrator.de, these updates have made it so you cannot connect to Windows 7 or Windows Server 2008 shares using SMBv2 as it will generate a “Invalid Handle” error. This problem, though, appears to only affect shares created by users who are an administrator.

To fix this problem, Andy has stated that users can uninstall the updates or use the following instructions to regain access.

If the user accessing the W7 happens to be an administrator on the remote system then this should work on the W7 hosting the share (elevated cmd):

reg add HKLMSOFTWAREMicrosoftWindowsCurrentVersionPoliciessystem /v LocalAccountTokenFilterPolicy /t REG_DWORD /d 1 /f

After that, you have to do a reboot! 

So it only occurs if the user administrator is on the system hosting the share, as long as it is normal user everything OK, so MS here has what is applicable to the administrative shares, now extended to other shares.

BleepingComputer has not been able to confirm if the above fix works.

We have also reached out to Microsoft for comment, but had not heard back at the time of this publication.

Related Articles:

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Microsoft Releases Servicing Stack Updates for Windows 10 Version 1703

Microsoft Patches Windows Zero-Day Exploited in Cyber Attacks

Microsoft Releases Windows 7 8.1 Cumulative Updates KB4467107 KB4467697

Microsoft 365 Business Gets Self Service Password Reset Writeback

Source: https://www.bleepingcomputer.com/news/microsoft/windows-kb4480960-and-kb4480970-updates-causing-network-and-license-problems/

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