Microsoft says that customers who install the optional KB4577062 update for Windows 10 versions 1903 and 1909 will encounter issues upgrading to newer Windows 10 versions on some devices.
Dynamic Update unable to download update packages
As Microsoft says, after installing KB4577062 users will receive compatibility warnings when trying to update the OS to newer versions if HTTP Internet access for LOCAL SYSTEM accounts is blocked using a firewall.
“When updating to Windows 10, version 1903 or Windows 10, version 1909 from any previous version of Windows 10, you might receive a compatibility report dialog with ‘What needs your attention’ at the top and the error, ‘Continuing with the installation of Windows will remove some optional features. You may need to add them back in Settings after the installation completes’,” Microsoft explains.
“This is caused by the Windows 10 Setup Dynamic Update (DU) being unable to download required packages.”
While Microsoft doesn’t mention that the compatibility issues caused by KB4577062 also affect newer Windows 10 releases, Günter Born reports that users have also seen this warning when trying to upgrade to Windows 10, version 2004 (aka the May 2020 Update).
Compatibility warning workaround
Microsoft says that it is currently working to address this issue with a fix to be available in an upcoming Windows 10 release.
Until then, the company advises customers to work around this known issue by re-enabling HTTP access to the Internet to the Windows 10 Setup Dynamic Update.
“If your device has access to HTTP blocked for LOCAL SYSTEM accounts, to mitigate this issue you can enable HTTP access for the Windows 10 Setup Dynamic Update (DU) using the LOCAL SYSTEM account,” Microsoft says on the KB4577062 support page.
“After you have allowed access, you can restart the installation of the update and you should not see the warning.
“You can also continue by clicking the OK button or use the /compat IgnoreWarning command to ignore compatibility warnings but this might also ignore other warnings that your device might be affected by.”