After spending several days trouble shooting between Office 365 and Windows Update support this has indeed been deemed a "bug"/issue in 2004 update and a fix is said to be in the works for release in the October update. Took the two several attempts to get
the actual truth about this being a known bug, but once they were all looking at the same online links (similar to this story post) they all concur that there was an issue and somebody was already working on the fix. Just nobody had flagged it with the right
information for most support techs to be able to reference the issue. Sadly, I still don't even know a bug number as the reps were not willing to give that information to have it posted in the wild.
This isn't helping the 100% fail rate we've had in our system updates. Stopped updating client computers to the latest update to avoid this problem. Some of you that have had success with some work arounds we attempted and had mixed success, but after 5
days most problems returned.
As many expected on here it impacts more often when you do NOT have a Microsoft account logging into the system, but even switching to MS account doesn't always FIX the situation, but did seem to resolve for limited time. As soon as returned to local only
log-in the problem returned within 48 hours of normal use and reboots.
A few work arounds we attempted fixed the issue for about 12 hours, but after 2nd reboot within that time the problem returned. We couldn't get logged into Office 365 Business accounts and also impacted Chrome password manager, Edge password manager, and
Remote Desktop credentials.
Hopefully the fix will be out sooner than mid Oct and hopefully it will be wide spread fix, but not holding my breath at this point. I just wished some users had spoken up sooner for us as they were already beyond the 10 day rollback so they weren't able
to be fixed without Windows install of 1909 version and then selective updates. Some that were still within the rollback period did roll back with success.