Microsoft 365 Crashes on Windows Server 2016: Workaround Solutions

If Windows Server 2016 users depended on a seamless Microsoft 365 (M365) experience this week, chances are they’ve been troubleshooting classic headaches, like crashing apps and ghostly error logs. Microsoft has spotlighted a widespread issue triggered by its latest Office updates. Affected users are reporting repetitive crashes in flagship applications, including Classic Outlook, running on Windows Server 2016—an environment often tailored for business-critical operations.
To add substance to the chaos, Microsoft has officially confirmed the problem with applications in M365 crashing post-update and issued a workaround. Let’s break down what’s happening, identify the culprit, and walk through the resolution.

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The Culprit: Faulty M365 Updates​

Here’s the lowdown: This issue mainly pops up when users update their Office products to Version 2412 (Build 18324.20168 or Build 18324.20190) on systems running Windows Server 2016 with Remote Desktop Services (RDS). Crashes are attributed to compatibility hiccups between new Office builds and older Windows Server infrastructure.
So, while innovation chugged along in rolling out these recurring updates, it unintentionally sidelined compatibility—much to the dismay of businesses relying on the M365 ecosystem for daily ops.
The error presents itself in the Event Viewer Application Logs, stubbornly raising flags under Event IDs 1000 or 1001. The crash points for most users to an issue with software modules like KERNELBASE.dll, which is a core Windows library often blamed for these fatal errors. For curious techies, here’s a breakdown of the kinds of log entries users have been encountering:

• Faulting application name: WINWORD.EXE (for Word crashes), or EXCEL.EXE, or OUTLOOK.EXE.
• Module at fault: KERNELBASE.dll
• Exception Code: A typical “0xc06d007e,” though this may vary.

Not only does this log data specify the crash's origin, but it also underscores how closely system libraries interact with Office’s codebase.

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The Workaround: Backpedaling to Stability​

While Microsoft investigates the swirling software storm, their suggested workaround involves rolling Office apps back to an earlier (and thankfully stable) build: Version 2411 (Build 18227.20152).
Here’s what you need to do. (And yes, we love bullet points when it comes to guides):

• Open Command Prompt as Administrator:
• Hit Win + S, type cmd, right-click, and select “Run as Administrator.”
• Run These Commands:
  Copy-paste (or type if you’re feeling adventurous) the following commands into the elevated Command Prompt window and press Enter after each:
  

  shell
  
     cd %programfiles%\Common Files\Microsoft Shared\ClickToRun
  
     officec2rclient.exe /update user updatetoversion=16.0.18227.20152

• Disable Office Updates:
  Go to any Office app, navigate to File > Office Account > Update Options, and select Disable Updates. This step ensures your setup doesn’t auto-update back to the buggy build.
• Mark Your Calendar:
  Microsoft suggests revisiting the Known Issue in their M365 Admin Center (logged as MO978220) by February 11. At that point, their engineers might’ve issued a corrected update.

It’s worth noting that after disabling updates, responsible administration involves keeping a manual tab on Microsoft-acknowledged issues or setting a timed reminder to re-enable updates once fixes are verified.

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What Exactly is 'RDS,' and Why is it Caught in the Crossfire?​

Remote Desktop Services (RDS) plays a pivotal role for shared environments like those hosted on Windows Server 2016. Think of it as the conduit for multiple users accessing one virtualized system simultaneously. This architecture makes certain organizations lean on RDS-surrounded workflows for everything—from running shared Office apps to centralizing data storage. These ecosystems are highly sensitive to software updates, primarily because one change can ripple across every session connected remotely.
The crashing of M365 apps in such environments doesn’t just slap you with a pop-up—it disrupts operational continuity. From missed deadlines to lost productivity, it’s not a minor annoyance but a core infrastructure setback.

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Why the Rollback Approach Works Well (For Now)​

Microsoft’s fix essentially throws the system into reverse gear. When new software versions start bickering with older platforms like Windows Server 2016, reverting to the last harmonious version returns the system to its sweet spot. But why does rollback even work?

• Versioning Dependency: Each Office app version is optimized for specific system conditions. When a mismatch occurs—like newer features that rely on OS modules not present in Server 2016—the software becomes unstable.
• Incremental Update Safety: Rolling back to a version with well-documented stability properties ensures IT administrators have a safety net until a proper patch is distributed.

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Key Points & What’s Next​

Here’s the TL;DR for you:

• Affected Systems: Windows Server 2016 with RDS.
• Culprit: Office M365 updates Version 2412 (Build 18324.20168/20190).
• Workaround: Revert to Version 2411 (Build 18227.20152) and disable updates temporarily.
• Future Fixes: Microsoft will likely issue a bug-free update soon, so monitor their known issues database.

On the upside, Microsoft’s proactive public acknowledgment of MO978220 provides relief by clarifying the debugging roadmap. Even so, it’s fair for users to question how such testing gaps slip past a tech juggernaut’s QA pipelines. Updates are supposed to help, not trigger rollback marathons.

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Exploring the Broader Implications​

This incident underscores the peril of mixing high dependency on legacy systems like Windows Server 2016 with bleeding-edge Office software. While enterprises benefit from extended lifecycle support (ELS) and stability in these older servers, they pay the price in compatibility woes with modern app ecosystems. It might just be time to start planning server OS upgrades if these hiccups feel like a growing trend.

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Wrapping it Up​

Rolling back Office builds is like duct-taping a leaky sink—it’ll hold for now, but it’s not a permanent fix. Windows Server 2016 users should use this downtime to assess whether they need better compatibility testing or infrastructure upgrades. Meanwhile, make sure your IT teams centralize communication about this workaround, and prepare for another round of update installs once the patch hits.
So, was this just another glitch in the matrix, or is it a sign we need more considerate rollouts? Sound off in the comments—your insights fuel conversations here at WindowsForum.com!

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Source: Neowin Microsoft issues workaround for Outlook, M365 apps crashing on Windows Server 2016