Microsoft says KB5120998 Windows update resets desktop settings

What happened

Microsoft has confirmed that desktop settings are lost or reset on some Windows devices after installing the KB5120998 August 2026 preview update. [...]

Why it matters

The development may change operating conditions or market expectations around Microsoft. Further confirmation and measurable outcomes matter.

Affected entities

View evidence

4 reports · 1 original report · 2 independent

1. BleepingComputerPrimary source · Supports · EN · 54%
   Microsoft says KB5120998 Windows update resets desktop settings ↗Sep 3, 2026, 8:16 AM
2. BleepingComputerPrimary source · Supports · EN · 51%
   Microsoft: KB5120998 mouse reset bug affects only non-English PCs ↗Sep 3, 2026, 11:22 AM
3. BleepingComputerPrimary source · Supports · EN · 52%
   Microsoft says some users can’t open the Teams desktop client ↗Sep 4, 2026, 10:30 AM
4. The Hacker NewsIndependent · Supports · EN · 100%
   Fake Software Installers Disable Windows Update and Weaken Microsoft Defender ↗Sep 2, 2026, 12:41 PM

Claims

• Microsoft says KB5120998 Windows update resets desktop settings Observed

Conflicts

No material conflict detected in the available evidence.

Timeline

1. September 2, 2026 at 12:41 PMFirst reported
2. Sep 3, 2026, 8:25 AMUnverified · 64/65%

Market move following event

Market reaction is not yet available for this asset and time window.

Score explanation