Shared windows 11 domain desktop with multiple users, having log in issues.

Hello.

You could resolve this by navigating to Computer Configuration\Windows Settings\Security Settings\Local Policies\Security Options and enabling the Interactive logon: Don't display last user name policy, which forces the "Other User" prompt and bypasses the problem at the point.

Additionally, maybe try to check that if the registry key HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\Policies\System\DontDisplayLastUserName is not conflicting with your Assign a default domain for logon GPO setting.

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The behavior matches known authentication issues introduced by recent Windows 11 24H2/25H2 updates that affect Kerberos/NTLM and domain logons on shared devices.

Based on the provided context, there are two practical actions that have resolved very similar symptoms:

1. Restart all domain controllers
   • In a similar Windows 11 24H2 domain-login issue, restarting all domain controllers resolved repeated/failed logons after update.
   • Action:
     1. Plan a maintenance window.
     2. Gracefully reboot each domain controller in turn.
     3. After all DCs are back online, test the scenario again on both shared PCs (lock, then unlock using the tile vs “Other user”).
2. Check for and apply any relevant Windows known-issue fixes/rollbacks
   • Windows 11 24H2/25H2 and Windows Server 2025 have a known issue where updates can cause Kerberos and NTLM authentication failures, including repeated credential prompts and “username or password is incorrect” messages, even with valid credentials.
   • If these PCs or your DCs are on affected builds (for example, after installing updates such as KB5065426 or later in that chain), apply the corresponding known-issue rollback or follow the guidance from the related KBs.
   • For environments impacted by duplicate-SID-related behavior, a Known Issue Rollback MSI and policy/registry override have been used successfully:
     • Install Windows 11 24H2, Windows 11 25H2 and Windows Server 2025 KB5065426 250923_06201 Known Issue Rollback.msi on the affected client.
     • In Local Group Policy Editor (gpedit.msc):
       • Go to Local Computer Policy > Administrative Templates > KB5065426_20250923_06201 Known Issue Rollback.
       • Set the policy to Disabled.
       • Reboot the client.
     • Alternatively, use the documented registry override under HKLM\SYSTEM\CurrentControlSet\Policies\Microsoft\FeatureManagement\Overrides.

If the issue persists after:

• restarting all domain controllers, and
• confirming that the latest Windows updates and any applicable out-of-band/rollback fixes are applied,

then collect logs (Security and System event logs on the clients and DCs) and look specifically for:

• Kerberos/NTLM failures,
• SEC_E_NO_CREDENTIALS, or
• Local Security Authority (lsasrv.dll) events indicating partial machine ID mismatches.

These will confirm whether the environment is hitting the documented authentication issue and guide whether further rollback or remediation from the related KB should be applied across affected devices.

References:

• Kerberos and NTLM authentication failures due to duplicate SIDs
• October update, Windows 11 24H2, issues authenticating - Microsoft Q&A
• how to get group policy for duplicate sid - Microsoft Q&A