Microsoft's KB5120998 Update Resets Desktop Settings for Some Windows 11 Users

A recent Windows update from Microsoft has been causing issues for some users, resetting their desktop settings and wallpaper to default. The KB5120998 August 2026 preview update was released on August 27 and affects systems running Windows 11 24H2 and Windows 11 25H2.

According to Microsoft's confirmation, the issue causes desktop backgrounds to display as a solid black color after installing the update. It is possible that other desktop settings may be affected as well, such as slideshow settings or contrast themes.

Users who have installed the KB5120998 update and are experiencing this issue will not be able to restore their custom settings on their devices. This is because the issue prevents the correct loading of settings, regardless of their value.