Hi,
This issue is currently under investigation, as we’ve received similar reports from other environments. In the meantime, we recommend using the Windows Installation Media Tool as a temporary workaround to perform clean reinstalls. Additionally, if you’re using Intune or Configuration Manager, deploying a custom recovery script may help bridge the gap until a fix is released.
We’ll keep you updated as soon as more information becomes available. If you’d like help implementing alternative reset methods or reviewing logs from affected devices, we’re here to support you.
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Best regards,
Quinnie Quoc.