Windows 10 KB5049981 update is causing major issues for some people, including a bug where the USB DAC fails to load. If you’re affected, you might run into “This device cannot start. (Code 10). Insufficient system resources exist to complete the API.” This bug affects some people only.

As we have flagged in our monthly reports, Windows updates have earned a bad reputation for fixing old issues and introducing new ones at the same time. If you check the past cumulative updates history for Windows 11 or 10, more issues crept in after installing the update, and the KB5049981 update for Windows 10 suffers the same inconsistencies.

Windows Latest spotted that Reddit is filled with users sharing their newfound problems with the update, and DAC devices seem to suffer the worst blow. After installing the update, DACs stop working on the PC and show an error 10 in the Device Manager.

Several other brand DACs also showed the same error but worked fine on machines without the new KB5049981 update installed. Multiple users told Windows Latest that they have issues with DAC devices. For those unaware, DAC translates digitally stored information from a laptop or other devices into an analogue.

Such devices are now broken after Windows 10 KB5049981, which is a mandatory problem.

If you share the same problem, it’s best to roll back the KB5049981 via the Settings app.

KB5049981 causes issues with the System Guard Runtime Monitoring Broker Service

There’s also a problem with the System Guard Runtime Monitoring Broker Service that fails to start. It doesn’t affect any other system functionality, and Microsoft went on to clarify that the service is dormant and will be purged in future updates.

In our tests, Windows Latest observed that after installing the January 2025 updates on Windows Server 2022, the “System Guard Runtime Monitor Broker” service fails to start and shows an “Access is denied” error (0x80070005).

As shown in the above screenshot, Service Control Manager prompt shows that Windows could not start the service on the local computer.

Microsoft has since confirmed that this service was intentionally disabled in the latest Windows Server 2022 updates. It appears that the service, which was originally designed to help monitor certain security features, is safe to ignore and leave disabled.

Microsoft recommends not attempting to enable or start it until the next update officially removes it from Windows Server 2022. Administrators may see an error when trying to start it, but there’s nothing to freak out.

Snipping Tool troubles, port problems, and crashes

In addition, we’ve also seen reports that Windows 10 KB5049981 has a bug where the default screenshot tool in Windows doesn’t behave properly, and there are myriad port problems.

The USB ports stopped working for many while also breaking the Wi-Fi connectivity on the Windows 10 systems. On some PCs, the port supplies power but cannot transfer data.

Then there are the usual cracks and blue screens that Windows users are well acquainted with. Windows 10 also shows the same update availability in the Settings app despite installing it.

Is it really hard for Microsoft to push an update that behaves normally for users? Breaking USB and audio devices will surely bother many users and leave a mark on the forums as well.

What about you? Did you notice any weird bugs after installing the KB5049981 update?

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