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NVG_FSP's avatar
NVG_FSP
Copper Contributor
Jan 15, 2026

Windows 11 25H2 desktop shell broken after January updates

Hello,

 

We are seeing a repeatable issue after upgrading users to Windows 11 25H2 and installing the January 2026 cumulative updates, and I’m trying to determine if this is a known or emerging regression.

 

 

 

Affected machines are on OS Build: (10.0.26200.7623)

 

Issue Summary

 

After the update, some users experience a broken Desktop shell:

 

Desktop folder icons do not open when double-clicked

Recycle Bin does not open from the Desktop

Right-click context menus appear, but Open / double-click does nothing

The same folders open normally when accessed via File Explorer using the full path

Issue affects only certain users, but we have now seen it on multiple machines

 

Recycle Bin being affected suggests this is not a file or OneDrive issue, but a Desktop shell / namespace problem.

 

Environment

Windows 11 25H2

January 2026 cumulative updates installed

Microsoft 365 environment

OneDrive in use with Desktop Known Folder Move enabled

Issue appeared after the 25H2 + January CU combination

Troubleshooting Already Performed

Restarted Explorer, ShellExperienceHost, StartMenuExperienceHost

Cleared Explorer Bags / BagMRU (HKCU)

Reset icon and thumbnail caches

Forced OneDrive files to be local (“Always keep on this device”)

Renamed affected folders (removed special characters)

Verified desktop path resolution

Confirmed issue persists across reboots

 

In at least one case, clearing Explorer Bags caused the Desktop to fail to re-render until reboot, further pointing to shell state corruption.

 

Observed Behavior

Desktop icons visually render

Click handlers do not fire

Recycle Bin (CLSID object) is non-functional from Desktop

File Explorer itself continues to work normally

Expected Behavior

 

Desktop icons and shell objects (including Recycle Bin) should open normally.

 

Question

 

Has anyone else seen reports of:

 

Desktop shell / namespace issues

Recycle Bin not opening

Desktop icons becoming non-interactive

 

after Windows 11 25H2 + January cumulative updates, particularly in environments using OneDrive Known Folder Move?

 

If this is a known issue or being investigated, any confirmation or guidance would be appreciated.

 

Thanks.

2 Replies

  • NVG_FSP's avatar
    NVG_FSP
    Copper Contributor

    So my next question would be, how do I get this in front of Microsoft, get them to acknowledge that this is a regression or bug introduced, and how do we get them to release a updated fix to this?

  • AmayaI's avatar
    AmayaI
    Bronze Contributor

    Your detailed report outlines a serious and specific issue affecting the Windows 11 25H2 shell, particularly with desktop icons, Recycle Bin, and shell namespace interactions after the January 2026 cumulative updates. This appears to be a regression or bug introduced in this update cycle, especially in environments with OneDrive Known Folder Move enabled.

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