Dear John Ekpenyong,
This issue has been observed in some environments and may be related to Kerberos authentication failures or LocalKDC service behavior introduced in Server 2025. In certain cases, the LocalKDC service may not start correctly, especially after updates like KB5048667 or KB5055523, preventing proper domain authentication.
We recommend checking the following:
Ensure DNS replication and time synchronization are functioning correctly across all domain controllers.
Temporarily disable the LocalKDC service or set it to Manual if not using Windows Hello or certificate-based logins.
Confirm that the domain trust relationship is intact and that the promoted DC is properly registered in Active Directory Sites and Services.
If the issue persists, we suggest escalating through your Microsoft 365 Admin Center or contacting Microsoft Support for guided remediation.
I hope this helps. Just kindly tick Accept Answer that others in the community facing similar issues can easily find the solution. Your contribution is highly appreciated.
Best regards,
Domic Vo