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⚠️ Classic Trap

GPO Stopped Applying After Removing Authenticated Users and the MS16-072 Trap

It is the most-repeated Group Policy accident of the last decade: an admin tightens a GPO's security filter, removes Authenticated Users, adds the correct group — and the policy stops applying to absolutely everyone, including that group. Nothing is broken. A 2016 security update changed who does the fetching.

✍️ Technical Anshu🪟 Windows Server / Active Directory⏱️ 8 minute read
🎥 Watch the full video — loopback processing and security filtering shown live in the Group Policy Management Console, step by step

Before June 2016, a client retrieved user GPOs using the user's credentials, so filtering a GPO to a user group was self-sufficient. The MS16-072 security update (KB3163622) moved that retrieval into the computer's security context to close a spoofing weakness. From that day on, the computer account needs Read on every GPO it fetches — including user GPOs aimed at a group the machine does not belong to. Remove Authenticated Users carelessly and you remove the computers' Read with it. Here is the whole story, the symptoms, and the fix.

●●●gpresult on a machine hit by the trap — example output
USER SETTINGS — applied by LAB-PC-04 The following GPOs were not applied because they were filtered out --------------------------------------------------------------- Lab-Lockdown-Policy Filtering: Denied (Security) Group membership of the user ....... in the target group ✓ Read permission for the COMPUTER .. missing ✗ The GPO was never downloaded, so the user was never even evaluated.

Example report values — the group membership looks correct, which is why this trap wastes so much time.

1

What the Update Actually Changed

Group Policy has two halves of work: fetching the GPO files and settings from a domain controller, and evaluating whether this user or computer should apply them. MS16-072 changed the fetcher for the user half. Retrieval now happens with the computer's credentials — the machine proves its right to even see the GPO before the user's memberships are considered.

That is a sensible security design: a rogue device or a spoofed server should not be able to hand a user policies the machine had no business reading. But it made one permission load-bearing that nobody used to think about — Read, for computers, on user GPOs. The default Authenticated Users entry silently provided it, because computer accounts are authenticated users too. The moment an admin removes that entry in the name of tidiness, the load-bearing wall comes out.

2

Why the Symptoms Point the Wrong Way

The cruel part is the misdirection. The admin checks the obvious thing — the user is in the target group, the GPO is linked to the right OU — and both are true. Yet the policy does not apply, and on the client the GPO shows as filtered out for security reasons, looking exactly like a problem with the user's permissions.

It is not the user. It is the PC standing in front of the user, unable to open the door. Train yourself to translate the symptom correctly: a filtered GPO that broke the moment you edited its security filter is a computer-Read problem until proven otherwise. The other classic clue is scope — it broke for everyone at once, including accounts whose permissions never changed. User problems are personal; fetch problems are universal.

3

The Fix — Two Minutes in the Delegation Tab

  1. Open Group Policy Management and select the affected GPO.
  2. Go to the Delegation tab and click Advanced (bottom right) to open the full security editor.
  3. Click Add, choose Authenticated Users (or Domain Computers — either works, since both cover the machine accounts), and grant Read only. Leave Apply Group Policy unchecked for this entry.
  4. Confirm your target group still holds Read and Apply — that is the group that decides who actually receives the policy.
  5. On an affected PC, run gpupdate /force, then verify with gpresult /h report.html: the GPO should now appear under Applied for target users, and filtered out — correctly — for everyone else.

Read without Apply is the whole trick. Computers can fetch; only your group can apply. Nothing about the update needs to be removed, and it should not be: it closed a real man-in-the-middle weakness in how policies were delivered.

4

Audit the Rest of the Forest While You Are Here

Nobody makes this mistake exactly once — they make it as a style, across every filtered GPO they ever tidied. So treat one occurrence as an audit trigger. Walk every GPO that uses security filtering and ask one question of each: if Authenticated Users is not in the filter with Apply, is it (or Domain Computers) present with at least Read? Any GPO that fails that question is either broken right now or one reboot away from confusing you.

Then make the rule permanent in your team's habit: filtering changes are made in the Scope tab, but they are finished in the Delegation tab, where the Read entry is verified before the console closes.

5

The Rule to Print

Filter with groups for Apply. Never remove Read for computers.

Authenticated Users in the filter with Apply means “everyone”. Authenticated Users in Delegation with Read only means “every computer may fetch this, and the filter group alone decides who receives it”. Both lines can be true at once, on the same GPO, and together they are the correct shape of every filtered GPO in a post-2016 domain.

🔴 Do not “fix” this by uninstalling the update. MS16-072 protected policy delivery from spoofed responses. The correct repair is a permission, it takes two minutes, and it stays correct forever — the removed patch would have to be defended every month for the life of the domain.

🎥 Watch the Delegation Tab Fix in the Video

The video works through security filtering on a live console — including who needs Read, who needs Apply, and how to prove the result with gpresult instead of hope.

▶️ Watch Full Video
❓ Common Questions (FAQ)

For the Read entry, should I use Authenticated Users or Domain Computers?

Either works, because both include the computer accounts that perform the retrieval. Many admins standardise on Authenticated Users with Read only on the Delegation tab, since that was the entry whose removal caused the problem. Whichever you choose, keep Apply off for it.

Does the MS16-072 change affect computer GPOs too?

Computer settings were always retrieved in the computer's own context, so nothing changed for them. The update's impact was on the user half: user GPOs are now fetched by the machine account, which is why a user-only filter group is no longer enough on its own.

The report says Denied (Security) for one user but the GPO works for others in the same group. Is that this trap?

No — that pattern is personal, so it points at the user: check for a Deny Apply inherited through another group membership, and remember that group memberships are only picked up at logon, so have the user sign out and back in before re-testing. The MS16-072 trap takes the GPO down for everyone at once.

This guide is based on the GPO loopback and security filtering video by Technical Anshu • Stuck on a step? Ask in the video comments — that is where answers come from 🙏