Windows 11 23H2 to 25H2 Upgrade Reportedly Disrupts Internet Connectivity for Users

A persistent Windows 11 in-place upgrade regression is deleting the C:\Windows\dot3svc\Policies folder, which holds 802.1X wired authentication profiles applied via Group Policy; as a result, upgraded enterprise workstations can be rendered completely offline until administrators manually restore policies or connect devices to remediation network segments. The report details the failure mode, documented cases across multiple upgrade paths, and practical mitigations (policy backup, post-upgrade gpupdate, script injection, MECM task sequence steps) while noting Microsoft has not acknowledged the issue publicly.