Microsoft Reports a New Windows 10 Bug – Affects Last Year’s v1903 and v1909
Microsoft has added a new bug in the list of known issues affecting Windows 10 November 2019 Update (version 1909) and Windows 10 May 2019 Update (version 1903). This is the first bug that the Windows maker has added in the list since February. The issue impacts both these feature updates since they share a common core operating system and an identical set of system files, and receive similar cumulative updates.
The company writes that some users might receive a compatibility report dialog warning that the "installation of Windows will remove some optional features." Microsoft explained that "you might receive this compatibility warning when LOCAL SYSTEM accounts are blocked in a firewall from accessing the internet via HTTP." The problem apparently arrived with August's Patch Tuesday update (KB4565351 - Builds 18362.1016 and 18363.1016).
Here is the complete Windows 10 bug report:
Compatibility report shows unexpectedly during update to new version of Windows 10
When updating to Windows 10, version 1903 or Windows 10, version 1909 from any previous version of Windows 10, you might receive a compatibility report dialog with "What needs your attention" at the top and the error, "Continuing with the installation of Windows will remove some optional features. You may need to add them back in Settings after the installation completes." You might receive this compatibility warning when LOCAL SYSTEM accounts are blocked in a firewall from accessing the internet via HTTP. This is caused by the Windows 10 Setup Dynamic Update (DU) being unable to download required packages.
As for the workaround, Microsoft suggests to enable HTTP access for the Windows 10 Setup Dynamic Update (DU) using the LOCAL SYSTEM account.
Workaround: If your device has access to HTTP blocked for LOCAL SYSTEM accounts, to mitigate this issue you can enable HTTP access for the Windows 10 Setup Dynamic Update (DU) using the LOCAL SYSTEM account. After you have allowed access, you can restart installation of the update and you should not see the warning. You can also continue by clicking the OK button or use the /compat IgnoreWarning command to ignore compatibility warnings but this might also ignore other warnings that your device might be affected by.
Microsoft said that the company is working on a resolution and will provide an update in an upcoming release.
The company is currently focused on Windows 10 May 2020 Update (version 2004), which has finally reached a stable state with almost all of its bugs having been addressed, and the upcoming October 2020 Update (version 20H2), which keeps receiving cumulative updates to fix any last-minute issues before the public release.