Microsoft has confirmed interop issues related to Legacy LAPS support. Apparently, using the feature with the latest April Patch update breaks it. Thankfully, there are workarounds.
A few days back, Microsoft announced the availability of Windows LAPS (Local Administrator Password Solution) via the month’s Patch Tuesday. The feature is available on Windows 10, Windows 11 and also on servers.
Since its release though, Microsoft has confirmed interoperability issues with legacy LAPS issues. When legacy LAPS (MSI package) is installed on machines with the latest Patch Tuesday updates installed, both legacy, as well as the new Windows LAPs breaks. Typically, an event log ID 10031 or 10032 is produced with the message “LAPS blocked an external request that tried to modify the password of the current managed account.”
Microsoft has also issued a workaround for the bug:
We have verified a reported legacy LAPS interop bug in the above April 11, 2023 update.
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USA — IT Following Windows Patch Tuesday LAPS release, Microsoft warns about major legacy issues