Microsoft squashes bug that broke upgrade paths in Windows 10 and Windows Server

The latest Patch Tuesday updates this month have been eventful, to say the least. There have been persistent reports of installation errors, claims of data corruption, instances of faulty Event Viewer logs, and broken reset and recovery options in older versions of Windows. Now, Microsoft has confirmed that it has resolved a major upgrade issue that originated from the August Patch Tuesday updates released a week ago.

On its Windows Release Health dashboard, Microsoft has indicated that after installing August Patch Tuesday updates rolled out on August 12, several client and server editions of Windows were experiencing error 0x8007007F when following certain upgrade paths. The affected upgrade paths in question are:

• Windows 10, version 1809 to Windows 11, versions 22H2
• Windows 10, version 1809 to Windows 11, versions 23H2
• Windows 10, version 21H2 to Windows 11, versions 22H2
• Windows 10, version 21H2 to Windows 11, versions 23H2
• Windows 10, version 22H2 to Windows 11, versions 22H2
• Windows 10, version 22H2 to Windows 11, versions 23H2
• Windows Server 2016 to Windows Server 2019
• Windows Server 2016 to Windows Server 2022
• Windows Server 2019 to Windows Server 2022

As can be seen above, quite a few upgrade paths have been impacted by this bug. It typically happened when updating the operating system through the Windows Setup program.

It is also interesting to note that while Microsoft opened and closed the issue on the health dashboard on August 18, 2025, it says that the problem was patched on August 15, 2025. As such, users should no longer experience the problem and if they attempt the same upgrade path again, it should go through without a hitch. It's unclear why Microsoft didn't begin publicly tracking the issue on August 15.

It's worth highlighting too that Windows 11, version 24H2 and Windows Server 2025 are completely unaffected by this problem; Microsoft says that the former in particular is its "most reliable" version of the client operating system after all.

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Posted Wednesday 20 August 2025 at 5:17 am AEST (my time).

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