Windows 11 January Update Breaks Notepad, Snipping Tool and Other Apps - WinBuzzer

TL;DR

• Bug Impact: Microsoft’s January 2026 security update KB5074109 broke Windows 11 apps like Notepad and Snipping Tool with error code 0x803f8001.
• Partial Fix: Microsoft released an emergency patch fixing the app launch bug, but a separate cloud storage issue remains unresolved.
• Ongoing Issue: Applications continue freezing when saving files to OneDrive or other cloud storage, forcing users to move files locally as a workaround.

Microsoft broke several Windows 11 apps with its January 2026 security updates, introducing two separate bugs affecting programs like Notepad and Snipping Tool.

Windows 11 users reported dual bugs this week from the same security patch, with Microsoft rolling out emergency fixes that addressed one issue while leaving the other unresolved.

Microsoft forum user Kave discovered the problem on Tuesday when trying to access work-related information stored in Notepad. “Getting the error code 0x803f8001 for most my microsoft apps including my Notepad app which has important information and URLS i need for my job. This is getting pretty paralyzing,” Kave wrote in a Microsoft support forum.

Multiple Windows applications stopped working, including Notepad, Snipping Tool, Xbox Ally Armoury Crate, Alienware Command Center, and Nitrosense. The errors stem from two distinct bugs introduced by KB5074109, Microsoft’s January 2026 Patch Tuesday security update released on January 13.

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First Bug Fixed, Second Persists

The technical root of the first failure proved more complex than a simple app malfunction. The 0x803f8001 error prevents apps from launching entirely, often accompanied by File system error (-2143322111).

The error occurs when the Microsoft Store cannot validate app licenses, typically caused by a corrupted Store cache or temporary Microsoft account sync issues rather than actual data loss.

Users initially feared they had lost access to files stored within affected applications, but the underlying data remained intact. This represented a licensing validation failure in Windows’ app infrastructure rather than file corruption. Microsoft’s app licensing system depends on the Microsoft Store to verify that applications have valid authorization to run, creating a single point of failure when that validation process breaks.

The reliance on centralized licensing validation creates a cascading failure pattern where a single Microsoft Store malfunction disables multiple productivity tools simultaneously.

This architecture positions basic utilities like Notepad as dependent services rather than standalone applications, transforming what should be isolated app failures into system-wide productivity disruptions.

Despite understanding the problem’s scope, standard remediation efforts proved ineffective. Windows Central’s team attempted standard troubleshooting procedures, including resetting the Microsoft Store app, but these measures failed to resolve the issue.

One team member found a partial workaround by manually uninstalling Armoury Crate and reinstalling it from ASUS’ website, though this approach required considerable time and technical knowledge.

“Applying Security Update KB5074109 (26100.7623) fixed this on my Windows 11 PC, and I’m now able to launch my apps as normal. This also fixed the Xbox PC app with Game Pass Ultimate games,” — Ben Wilson, Windows Central

Sources at Microsoft and ASUS confirmed awareness of the issue as reports multiplied across support forums.

Cloud Storage Bug Remains Unresolved

While the licensing bug received a fix, a second issue introduced by the same update continues to affect users.

“After installing Windows updates released on or after January 13, 2026 (KB5074109), some applications might become unresponsive or experience unexpected errors when opening files from or saving files to cloud-backed storage, such as OneDrive or Dropbox,” Microsoft acknowledges in an official statement.

Unlike the immediate failure of the licensing error, the cloud storage problem manifests differently. Rather than preventing apps from launching, it causes them to freeze during file operations, creating a workflow disruption that can occur at any moment during productivity tasks.

Users might work for hours without incident, then suddenly encounter complete application lockups when attempting to save a document or open a file from cloud storage.

The intermittent nature of the cloud storage failures creates a more insidious problem than the app launch bug. While the licensing error fails immediately and visibly, the file operation freezes introduce unpredictability into every save action, forcing users to question whether each document save will complete successfully or trigger a system lockup that requires forced termination.

This unpredictability proves especially damaging for enterprise users. Outlook users face particularly severe consequences. When PST files are stored on OneDrive, Outlook can become completely unresponsive and fail to reopen unless users manually terminate its process through Task Manager or restart their entire system.

Users also report sent emails failing to appear in the Sent Items folder, and previously downloaded messages being downloaded again, creating confusion about which communications went through.

OneDrive Contradiction

The cloud storage bug creates a troubling irony. OneDrive represents a cornerstone of Microsoft’s cloud strategy, deeply integrated into Windows 11 with persistent prompts encouraging users to store files in the cloud rather than locally.

Windows 11’s setup process actively discourages local file storage, presenting OneDrive as the default and recommended option. Now that same integration is causing severe system instability.

Microsoft is currently investigating reports of apps becoming unresponsive when interacting with OneDrive and other cloud storage platforms. As a temporary workaround, users experiencing issues should move PST files from OneDrive to local storage, effectively reversing the cloud-first approach Microsoft has promoted for years.

The contradiction extends beyond technical functionality to business strategy. Microsoft has positioned cloud integration as a fundamental advantage of Windows 11, marketing OneDrive storage as necessary for modern productivity workflows. Security patches that break this core functionality undermine those marketing claims and user trust in cloud dependency.

Pattern of Recurring Problems

The incident compounds a broader quality control crisis rather than representing an isolated failure. January’s bugs extend a troubling pattern. Windows 11 experienced over 20 major update problems throughout 2025, with quality concerns continuing into the new year.

Users have grown increasingly frustrated with each Patch Tuesday, uncertain whether security updates will protect their systems or break core functionality.

KB5074109 introduced multiple additional issues beyond the app launch and cloud storage bugs. Users reported authentication failures in Azure Virtual Desktop and Windows 365 with Error Code 0x80080005, while File Explorer’s LocalizedResourceName directive broke, causing custom folder names to revert to system codes.

Some users with Nvidia and AMD GPUs experienced random black screens, while others encountered freezing issues with Outlook Classic using POP/SMTP accounts. Another fault caused some Windows 11 23H2 systems to refuse shutdown or hibernation commands entirely.

Quality Concerns and AI Code

Behind these cascading failures lies a controversial development practice. Industry observers have raised questions about potential connections between Microsoft’s increasing reliance on AI-generated code and declining update quality.

Microsoft has publicly stated that AI tools generate approximately 30 percent of its code, with CEO Satya Nadella highlighting AI coding assistants as productivity accelerators for developers. Windows 11’s bug frequency increased during the same period Microsoft expanded AI coding tool usage across development teams, though whether this correlation indicates causation remains unproven.

Security Dilemma

These quality problems force an impossible choice on users. KB5074109 patches nearly 100 security vulnerabilities, including three active zero-day exploits being used in the wild.

Uninstalling the update to avoid the cloud storage bug would leave systems exposed to serious security threats, including vulnerabilities that attackers are actively exploiting against unpatched systems.

The zero-day exploits addressed in KB5074109 include privilege escalation vulnerabilities that could allow attackers to gain administrator-level access to compromised systems.

Security researchers have confirmed active exploitation attempts, making the decision to uninstall the update particularly risky for enterprise environments and users handling sensitive data.

While Microsoft investigates the OneDrive issue without providing a timeline for resolution, users requiring immediate relief must choose between moving files to local storage or accepting periodic application freezes. For organizations with thousands of employees storing Outlook PST files on OneDrive, the workaround demands mass file migrations and storage reallocation.

Microsoft forum user Kave’s experience illustrates, these technical failures create real operational paralysis for users who depend on Windows 11 for daily work, leaving them caught between security vulnerabilities and productivity disruptions with no clear path forward until Microsoft delivers a comprehensive fix.