"Activate Windows" Watermark has Appeared on Windows 10 Enterprise for Virtual Desktops SessionHost

[MarkF26]

After several months of using a SessionHost, the "Activate Windows" watermark has appeared on the desktop. The Activation selection in the Settings windows shows the following: 

                   Windows is Activated using your organization's activation service.

I have followed the directions found in the Troubleshoot Windows virtual machine activation problems in Azure - Virtual Machines | Microsoft Doc... with no success. The VM was created using master image, with current Version info as  Version 21H2 (OS Build 19044.1889) 

Update @ 9/7/22:

Looking at the result of the SLMGR /xpr reveals that the Activation actually has taken place, but Windows for some reason does not get updated that it is. The proof is every time SLMGR /ato is done the expiration is reset to 180 days from the run date. 

Using Procmon when doing a "Activation Troubleshooter" shows the following:  [see screenshot]

So, perhaps that's why the troubleshooter decides it couldn't activate Windows. Further troubleshooting is in progress. 

[#2]

you can user "slmgr /dlv" to check KMS settings.. any FW or NSG in place?

[#3]

I have the same problem and have a case open with MS, but no luck in resolving it yet.

[#4]

@tommykneetz See SLMGR /dlv response as shown below. There does not seem to be any missing info. As for the FW or NSG, the article I referenced directs you to check connectivity with the servers, and they all check OK. 

[#5]

DNS and network routing is working? Internet outbound is on the azure site or do you use force tunneling?

https://docs.microsoft.com/en-us/troubleshoot/azure/virtual-machines/troubleshoot-activation-problem...

[#6]

Hi,
We are having the exact same issue on our personal AVD Desktops.
The Windows 10 Activate Windows watermark is appearing randomly for users.
I logged on as admin on the same machine and in System Activation settings it showed that it was activated but the watermark remained. I did a slmgr /dlv and it shows that it was all activated.
I installed VAMT to see what the status was with all the other machines, all shows as activated corrected against Azure's KMS server.
Very puzzled by this and users keep reporting this water mark issue.
Licensing of the users all seemed to be OK.

[#7]

I believe that I read its a known issue.. I would open a support case

[#8]

Not got very far with this and the watermark is still appearing on our Windows 10 AVD Personal desktops. Anything from the AVD Product group?

[#9]

We got that on different customers from time to time so far. Is there any reaction from Microsoft regarding this?

[#10]

@MarkF26 

Hi Mark,

I raised a call with Microsoft Support on the 28th September for the same issue. Following a troubleshooting session, the engineer advised that there is an ongoing investigation into this issue but currently no ETA on the fix.

Details are below from the engineer:

"I have found that your behavior matches with an ongoing investigation:

• Windows 10 AVD
• Platform image: Windows 10 Enterprise for Virtual Desktops-10.0.19044.2006
• Showing intermittent watermark: Activate Windows
• Slmgr shows that the VM is licensed with Partial product key: GVLK
• Issue seems to be happening with users with lower permissions, not been able to be detected with users that are part of the Local Admins group

At this moment, there is no ETA about providing results of the ongoing investigation nor a fix.

Once the fix is released, the same will be shipped as part of an update. This can be either a preview update or as well in a cumulative one after patch tuesday."

Hope this helps,

Phil

[#11]

Hi,

I've been working with Microsoft, been playing with applying keys, enabling and disabling test signing. They keep feeding back to the AVD product group but doesn't look like they can find a solution to this issue. These users are pretty restricted so your thought on a permission issue somewhere could be correct.

Thanks.

Kevin

[#12]

@KevHalWe have the same issue with a Nerdio Scale set. We have observed this issue for 2 weeks now and the common theme is only for the 1st user of the AVD will have this watermark, for some of the AVD. The subsequent 4 users (as we have total of 5 users per AVD) do not have any water mark. We have checked and also have each user activated. I look forward to an update for this from MS.

[#13]

@USNOOZEYULOOSEY @KevHal Hi chaps, I work for Nerdio and I worked with a few customers who were having this issue. What we did to get around the issue is just to force the re-activation. We just used the Nerdio scripted actions to run Slmgr.vbs /ato against the host pool and that fixed it. 

However, that's a workaround, not a fix. But it stops the problem until Microsoft can fix the issue. 

[#14]

@Neil McLoughlin  Awesome stuff. I didnt realise I could do that. I have tried it on our test AVD and nothing broke so I shall now run it on our production environment. Lets see tomorrow how that runs. We manually ran that command for 1 user and it removed the watermark (even though event log shows its already activated). Interesting its only for the first user for random VM's. We have ours set to a 5 static VMs that are reimaged nightly, so we assume thats causing it in the first place.

Love your product, thank you Neil and team.

[#15]

We've not had this occur since Monday 17th Oct in our environments. Hopefully they've finally found a resolution. My call is still open with MS who is keeping PG informed.

[#16]

Well its been about a week. Whilst the scripted action works (thankfully), it has a side effect. We have a scale set, and we have the action applied daily (as I cant see a way to do it upon logon), it will turn on VM's, run the scripted action, then turn it off again. Our scale set launches 8/70 VM's by 0510hrs but scales out to have 40 available sessions at all times. For some reason users can logon during the scripted actions timing which is unfortunate as users log on for 2 minutes, then get kicked off once the scripted action completes and it shuts down that VM again. We dont want to change from the scale set and how its setup.
Is there a way for it run the action upon a AVD's logon rather than run it daily?

[#17]

This has been occurring for us and some of our clients. Interestingly if the user signs out and then back into their session on the same session host the Activation Message disappears. It would good to get a fix for this across the board.

[#18]

Hi all.,

I have had comms from Microsoft Support that the issue "might" be fixed by the following KB:

- KB5018482

They also confirmed that it is likely this will be rolled up into the Windows 10 November Image.

Regards.

[#19]

@elliotchandler. I think slmgr /ato occurs at logon but only once. So when a user logs on first time, it misfires but doesnt try again. I have the same issue as you and would like something as well :(

@Redsman13. I assume you mean this line "Addresses an issue that causes an OS upgrade to stop responding, and then it fails." That was the only thing I could find in the 19 changes that addressed activation. But to me that sounds like upgrades but our issue is just activation? I wonder if it'll work :( Thanks for the information though :)

[#20]

KB5018482 seems to have fixed the issue