Windows 11 Pro to Enterprise upgrade fails with 0x80070005 error since KB5036893

Microsoft has confirmed that Windows 11 Pro customers are having issues when trying to upgrade to a valid Windows 11 Enterprise subscription. A valid subscription license is assigned from the Microsoft 365 admin center. According to Microsoft, the upgrade fails with an “Access denied” error accompanied by an error code “0x80070005.”

Microsoft has tracked down the bug and says it  originated with the April 2024 Patch Tuesday update under KB5036893 which was also a major Windows 11 23H2 feature update as it was the arrival of Moment 5. The update was also the cause of some other major bugs and issues including system slowdown 0x8007000d and 0x800705b9 errors. You can read about those issues its dedicated article linked here.

Microsoft has yet to provide more details about the issue on its Windows health dashboard website since at the time of writing; it has only updated its Patch Tuesday support articles. In the known issues section, it has added this new issue with the symptom and its workaround, though the workaround is hardly a workaround at all as it is simply a declarative that confirms Microsoft is looking into the issue:

Symptom: After installing this update or later updates, you might face issues while upgrading from Windows Pro to a valid Windows Enterprise subscription.

Resulting from this operation, you might observe the following symptoms: – OS upgrade operations may fail, and this might be shown in the LicenseAcquisition scheduled task in Task Scheduler -> Task Scheduler Library -> Microsoft -> Windows -> Subscription as ‘Access denied error (error code 0x80070005)’ under ‘Last Run Result’.

Workaround: We are working on a resolution that will be released on a Windows update in the coming weeks.

Other issues currently affecting Windows include a high CPU usage bug related to Phone Link and a OneDrive issue wherein shared folders seem to be bugged as they have suddenly been transformed into internet shortcuts and another where the Photos app is broken as a consequence of non-admin-based Windows group or CSP policy.