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Microsoft told IT admins it wrongly marked an Always On VPN connection bug as resolved in October 2026 Windows 11 cumulative updates, reverting the status to 'Mitigated.' The bug, first acknowledged in September, can leave VPN connections stuck or failing with a 'port already in use' error on Windows 11 24H2 systems using automatic protocol selection.
Microsoft said the threat actor it tracks as Storm-0940 used compromised application credentials tied to ConnectWise Cloud Backup to try to access more than 2,250 downstream Microsoft 365 customer tenants. In some cases attackers reached privileged cloud access within three hours of targeting, and Microsoft said the group used an agentic AI penetration-testing framework to speed up the campaign. ConnectWise disclosed unauthorized access to its Cloud Backup application identities on Oct. 16 but has not said how attackers first obtained control of them.
Fortune reported, citing Microsoft insiders, that the next Xbox console—reportedly codenamed Helix and due in 2028—has been internally projected to cost consumers between $1,200 and $1,800, unless Microsoft opts to subsidize the price. Former Xbox president Sarah Bond had previously described the upcoming hardware as the biggest technical leap of any console generation, while former Microsoft executive Mike Ybarra said he wouldn't release a console at that price point.
Microsoft published a study in Science showing its MAI-DxO system, which orchestrates multiple AI agents to question patients and debate diagnoses, correctly diagnosed complex NEJM case studies 83% of the time, versus 36% for primary care doctors working alone. The system performed best when paired with OpenAI's GPT-5 and GPT-5.5 models, and Microsoft also measured cost, saying its orchestration layer reduced the price per case by about $3,000 compared to running GPT-5 alone.
Microsoft says China state-aligned hackers breached ConnectWise's cloud backup service and stole application credentials used to link ConnectWise with corporate customers' Microsoft-hosted environments. Using AI agents to automate sign-in attempts at nearly 3,000 per minute, the attackers gained access to roughly 2,250 organizations' emails and files. ConnectWise has paused access to the affected backup system and is investigating while working to restore service.
Microsoft has released PowerToys version 0.102, a free Windows utility update that adds two mouse-related tools. Mouse Button Lock lets users hold a mouse button briefly to lock text selection, then move the cursor and click again to stop, easing selection of long text blocks. CursorHide hides the mouse pointer from view until the user moves the mouse or starts typing again.
Fusion startup Helion announced it received $175 million in Department of Commerce CHIPS Act funding to research, develop and manufacture advanced semiconductors and power electronics for its fusion power plants. The company also disclosed a separate $50 million private investment. The funds will build an automated semiconductor production line in Washington State to supply Helion's Orion power plant, currently under construction.
Microsoft published research in Science claiming its Diagnostic Orchestrator, which uses multiple AI agents powered by OpenAI's GPT-5 to mimic a panel of medical experts, diagnosed cases more accurately than human physicians. On NEJM case reports it scored about 83% accuracy versus 36% for doctors using references, and on emergency department data from Beth Israel Deaconess it scored 80% versus 47% for physicians, often at lower estimated cost.
Tom's Hardware reports that Microsoft's Surface Laptop Ultra with Nvidia's RTX Spark platform struggles with gaming at its native 3270x2180, 3:2 resolution because DLSS upscaling becomes heavy and standard 16:9 or 16:10 content stretches or shrinks awkwardly on the unusual aspect ratio. The outlet found that Microsoft's built-in 1600x1024 scaled mode is too low-resolution, and instead calculated a custom 1764x1176 resolution that better matches the pixel count of 1080p, yielding sharper images with less DLSS strain.
Microsoft has told employees it is winding down The Garage as a centralized program, according to an internal FAQ reported by Notepad and first disclosed by GeekWire. The Garage, based at Microsoft's Redmond campus with about 15 locations worldwide, let staff prototype hardware and software during hackathons over its 17-year history, producing projects like the Seeing AI accessibility app and Mouse Without Borders. Microsoft has also taken down The Garage's hall-of-fame website that documented past projects.
Microsoft has published steps for IT admins to restore access to the Exchange Web Services (EWS) API after apps relying on it began failing with login prompts or protocol errors. Admins can either uncheck a block option in the Microsoft 365 admin center's Baseline Security Mode or run a PowerShell command to re-enable EWS within four hours. Microsoft says this workaround only lasts until April 2027, when EWS will be permanently retired.
Industry analysis suggests that surging demand for memory chips, driven largely by AI companies, is raising component costs for Microsoft and Sony as they develop next-generation gaming consoles. Current Xbox and PlayStation hardware has already seen price increases tied to these chip shortages, and the report warns future console prices could rise far more sharply.