Azure Virtual Desktop enters 2026 with continued investment in stability, security, and client readiness. With the Remote Desktop Client (MSRDC) retirement in March 2026 fast approaching, January’s updates focus heavily on Windows App maturity, identity improvements, performance optimisation, and operational reliability.

While no major headline feature launched this month, the cumulative refinements significantly strengthen enterprise readiness for the year ahead.

Below is a breakdown of the key Azure Virtual Desktop updates released in January 2026.

1. Windows App – Enterprise Readiness Enhancements

Microsoft continues positioning the Windows App as the strategic AVD client, with January delivering further quality and compatibility improvements.

What’s New?

• Improved stability for long-running sessions
• Enhanced Conditional Access token refresh handling
• Additional RDP property compatibility updates
• Faster workspace discovery
• Improved multi-monitor behaviour in high DPI environments

With MSRDC retirement approaching, organisations should accelerate Windows App validation and rollout.

Official Microsoft Link:
https://learn.microsoft.com/en-us/windows-app/whats-new?tabs=windows#version-209640

2. FSLogix – Reliability & Profile Load Optimisation

FSLogix continues to receive incremental refinements aimed at improving large-scale deployments.

What’s New?

• Improved resilience during Azure Files transient connectivity issues
• Reduced likelihood of profile lock conflicts
• Additional logging for profile load troubleshooting
• Minor performance improvements to Office container processing

These updates help reduce logon failures and support more predictable performance during peak user activity.

Official Microsoft Link:
https://learn.microsoft.com/en-us/fslogix/overview-release-notes

3. Azure Monitor – Improved AVD Insights Accuracy

Monitoring accuracy and observability remain a priority for Microsoft.

What’s New?

• More consistent session duration reporting
• Improved correlation between session experience and host metrics
• Backend performance improvements to AVD Insights workbook

These refinements provide better data integrity for troubleshooting and capacity planning.

Official Microsoft Link:
https://learn.microsoft.com/en-us/azure/virtual-desktop/whats-new-agent#version-1013229200

4. App Attach – Production Stability Improvements

App Attach continues to mature as a modern application delivery model.

What’s New?

• Improved behaviour during host pool scale-in events
• Reduced impact when multiple MSIX packages are attached
• Enhanced reliability across pooled session hosts

App Attach continues strengthening its position as a scalable alternative to traditional image-based application management.

Official Microsoft Link:
https://learn.microsoft.com/en-us/azure/virtual-desktop/whats-new

5. RDP Shortpath – General Availability of RDP Shortpath Configuration via GPO and Microsoft Intune

Shortpath remains a critical component for improving end-user performance.

What’s New?

• Stronger policy-governed control 
• Deterministic Shortpath behavior 
• A layered model that works with AVD host pool configuration 
• A consistent management experience across Windows 365 and AVD

For geographically distributed organisations, these refinements help maintain low-latency user experiences.

Official Microsoft Link:
https://techcommunity.microsoft.com/blog/windows-itpro-blog/announcing-general-availability-of-rdp-shortpath-configuration-via-gpo-and-micro/4489445

6. Security & Identity – Continued Zero Trust Alignment

Microsoft continues tightening security alignment across AVD.

What’s New?

• Improved Conditional Access enforcement during extended sessions
• Better token renewal handling in multi-session environments
• Continued improvements supporting External Identities scenarios

These updates reinforce AVD’s role in secure modern workplace strategies.

7. Azure Files Premium – Azure File Sync 

Azure Files Premium continues receiving backend improvements that directly benefit FSLogix workloads.

What’s New?

• Lower Latency
• Better Performance
• Support for local data residency requirements

These backend improvements help deliver faster and more stable user logons.

Official Microsoft Link:
https://learn.microsoft.com/en-us/azure/storage/file-sync/file-sync-introduction

8. Entra-only identity support for SMB Azure file shares is now in public preview

Microsoft Entra Kerberos authentication now supports cloud-only identities

What’s New?

• Enhancing Secure Access with Admin Roles
• Modern Identity Management Experience
• No Dependency on On-Premises infrastructure

These refinements help organisations optimise costs without negatively impacting user experience.

Official Microsoft Link:
https://techcommunity.microsoft.com/blog/azurestorageblog/cloud-native-identity-with-azure-files-entra-only-secure-access-for-the-modern-e/4469778

9. Windows 11 Multi-Session – Ongoing Optimisation

Windows 11 multi-session remains the strategic OS for AVD moving forward.

What’s New?

• Minor performance improvements for high-density session hosts
• Stability enhancements for collaboration-heavy workloads
• Continued optimisation for modern application stacks

Enterprises standardising on Windows 11 multi-session will continue seeing incremental performance gains.

Official Microsoft Link:
https://learn.microsoft.com/en-us/windows-server/remote/remote-desktop-services/remote-desktop-services-vdi-optimize-configuration

10. Final Reminder – Remote Desktop Client Retirement

With just weeks remaining, Microsoft continues reinforcing the transition to Windows App.

Key Date

⛔ Remote Desktop Client (MSRDC) retires on 27 March 2026

Now is the time to finalise Windows App rollout plans and ensure documentation, support teams, and users are prepared.

Official Microsoft Link:
https://techcommunity.microsoft.com/blog/windows-itpro-blog/prepare-for-the-remote-desktop-client-for-windows-end-of-support/4397724

Summary

January 2026 reinforces Microsoft’s continued commitment to Azure Virtual Desktop, focusing on stability, security, monitoring accuracy, and Windows App readiness.

Although the updates are incremental, their combined impact strengthens enterprise reliability and prepares organisations for a fully Windows App-driven AVD future.

With MSRDC retirement imminent, organisations should prioritise client validation, identity policy testing, and profile optimisation as part of their 2026 roadmap.