Microsoft is removing the Windows 11 Drag Tray, the file-sharing panel that appeared when users dragged files toward the top of the screen, after strongly negative Insider feedback. The feature will disappear from preview builds first, while Microsoft considers a different sharing experience for a future update.

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Windows 11 update KB5121003 is causing Microsoft Teams and New Outlook to fail at launch on some ARM64 PCs, including Surface Laptop 7 and Surface Pro 11 systems. The newly identified AppX dependency failure expands the update’s problems beyond the previously reported inpoutx64.sys compatibility issues, while traditional Win32 applications continue to work.

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Microsoft Purview Data Lifecycle Management is getting a file-level archive action for SharePoint Online and OneDrive for Business. The feature will move inactive files into Microsoft 365 Archive before their retention periods end, reducing active storage use while keeping the content under retention controls; public preview is expected worldwide by mid-September 2026, with general availability targeted by the end of September.

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OpenAI is testing Private Safety Processing, a new system that detects coordinated misuse across multiple AI interactions while preserving zero data retention for eligible enterprise and API customers. It is designed to identify threats such as attempts to develop malware without exposing prompts or responses to OpenAI employees.

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Microsoft will stop selling license-included Azure VMware Solution (AVS) environments on October 31, 2026, and existing customers must move to a new licensing model by August 30, 2027. AVS will continue, but customers will need to obtain VMware Cloud Foundation (VCF) licenses from Broadcom and bring them to Azure.

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Microsoft Sentinel now attaches User and Entity Behavior Analytics (UEBA) insights to records from the UEBA behaviors layer. UEBA is a machine-learning feature that builds a baseline of typical activity for users, hosts, IP addresses, and applications, then flags activity that does not match that baseline. The behaviors layer groups raw security logs into structured summaries of who did what to whom. Microsoft added those findings to each behavior and expanded UEBA coverage to selected firewall, proxy, and cloud sources. The anomalies-on-behaviors capability is in preview and is available only for Microsoft Sentinel in the Microsoft Defender portal.

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Visual Studio Code 1.135 Insiders improves Copilot agent management with consistent sandbox policies, enterprise-controlled permissions, workspace-aware session handling, and notifications for sessions that need attention. The release also expands voice interactions and adds a signed-out BYOK testing option for the Copilot Agent Host.

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WinApp VS Code extension v0.3.0 adds schema-aware IntelliSense for AppxManifest.xml files, giving Windows developers context-sensitive completion and immediate validation while they edit app identity, capabilities, dependencies, and activation settings. The public-preview release also searches the workspace for files and folders needed by packaging, running, and signing commands.

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A Microsoft deployment pattern puts Azure Landing Zones under version control and approval gates instead of relying on manual portal configuration. By combining Azure DevOps with Terraform, organizations can provision subscriptions, networking, identity, policies, security, and monitoring through a repeatable pipeline that produces an audit trail before changes reach production.

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Microsoft’s free Delivery Optimization Troubleshooter gives Windows administrators a faster way to diagnose failed peer downloads and Microsoft Connected Cache problems. A single PowerShell command gathers service logs, policies, network data, performance counters, and event information, while an optional live-capture mode records the failure as it happens.

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Cerebras is targeting a major jump in AI inference capacity with its new CS-4 server rack, promising four times faster processing and 20 times more throughput by the end of 2027. The system combines three WSE-3 Turbo processors with Cerebras’ Nexus architecture and is scheduled for release in the third quarter of 2026.

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Anthropic generated $11.6 billion in second-quarter revenue, surpassing OpenAI for the first time as the ChatGPT maker’s revenue reached $6.7 billion but its operating loss expanded to $12.3 billion. The contrasting results show Anthropic gaining commercial momentum while OpenAI faces rising infrastructure costs and increasing pressure to become profitable before a possible IPO.

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Cursor has launched Origin, a code-hosting platform that aims to challenge GitHub just as GitHub endured a worldwide outage lasting more than six hours, with error rates reportedly nearing 20%. Origin supports repositories, collaborative editing, and pull requests, while allowing teams to keep existing GitHub workflows in place.

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Docker is expanding beyond container packaging with Docker Sandboxes, which run autonomous AI coding agents inside isolated microVMs, and Docker AI Governance, which lets organizations control their access to filesystems and networks. The shift gives administrators a way to adopt AI-assisted development without allowing unpredictable agents to reach developer laptops or internal systems directly.

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Microsoft has published a detailed Windows 11 Delivery Optimization guide that could significantly reduce internet traffic during update and app rollouts. The recommended baseline expands local caches, keeps peer discovery on the LAN, and uses deployment rings so a small group of devices seeds content before larger waves begin.

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OpenAI has fixed a Codex bug that could turn a temporary-file cleanup operation into recursive deletion of a user’s real home directory. The failures affected GPT-5.6 sessions running in Full-Access mode without sandboxing or automatic review, with reported damage including a founder’s Mac and a production database.

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Salesforce is moving its Headless 360 strategy from promise to deployment with an open-beta MCP Server that lets Agentforce, Claude, ChatGPT, Cursor, Gemini, and Copilot discover business capabilities directly. The company is also making Data 360’s MCP Server generally available, allowing agents to transform data, build models, and activate campaigns while inheriting Salesforce permissions and governance.

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Microsoft Teams is preparing a broad set of meeting and notification upgrades, including a one-step control to pause all alerts, in-meeting security reporting, and organizer transfers for recurring meetings. Microsoft’s roadmap also points to Copilot-generated summaries for missed messages, although that feature is not scheduled until February 2027 and roadmap dates can change.

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Microsoft is testing three previously unannounced Windows 11 26H2 features: per-app permissions for traditional Win32 software, an option to open applications maximized, and a redesigned AutoPlay dialog. The additions expand on Windows 11 26H2’s movable taskbar and smarter Search, with the update expected in fall 2026 and likely to arrive as a small enablement package for supported 24H2 and 25H2 systems.

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