I ran into this issue and searching for a solution stumbled onto this post so I'm posting my work-a-round that worked for me.
Note: "If you absolutely need the spoolss named pipe to function, you can re-enable the legacy SMB transport in the registry, though Microsoft advises against this for security reasons." copied https://itm4n.github.io/printnightmare-not-over/
Now for the work-around:
Run gpedit.msc on MS Sever 2025
Navigate to Computer Configuration > Administrative Templates > Printers
Configure RPC connection settings:
- Enabled
- Protocol to use for outgoing connections: RPC over named Pipes
- Use authentication for outgoing RPC connections: Default
Navigate to Computer Configuration > Administrative Templates > Printers
Configure RPC listener settings:
- Enabled
- Protocols to allow for incoming RPC connections: RPC over named pipes and TCP
- Authentication protocol to use for incoming RPC connections: Negotiate
Next, run a gpudate/force and restart the printer spooler service.
All done, hope above can help out someone else.