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Some users reporting that they can't sign into their Microsoft accounts on Windows Phone 8.1

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NewsHubIf you’ve got a phone that shipped with Windows Phone 8.1 and is running Windows 10, you might want to think twice before using the Windows Device Recovery Tool to roll it back, as some users are complaining that after doing so, they are unable to sign into a Microsoft account. This problem would also exist if you’re already running 8.1 and do a factory reset of your phone through the software.
Hearing these reports, we of course decided to try it out. We tested two phones (yes, there is a limit of how many phones we’ll render useless for you at once), one that would reset to Windows Phone 8.1 Update 2 and another that would reset to Windows 10 Mobile; more specifically, a Lumia 640 and a Lumia 550, respectively.
Sure enough, the Lumia 640 wouldn’t allow us to sign into a Microsoft account. When beginning the out-of-box experience, it asked for a sign-in for Reset Protection. This brought up the Microsoft account sign-in screen, and it even allowed us to enter a password, but once signed in, it couldn’t connect to turn off Reset Protection.

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