Can confirm this is an actual issue from Microsoft impacting lots of normal system apps that update via the Microsoft Store and/or Windows Update.

I’ve seen it mess up Notepad, Snipping Tool to name a few.

It’s pretty egregious that a bug like this can mess up utilities already installed on your computer.

Windows is really feeling like a single-player video game that requires an always on connection.

Source: I’m an IT professional who has been helping people with this since yesterday.

More source: https://learn.microsoft.com/en-us/answers/questions/5729246/how-to-fix-error-code-0x803f8001

I maintain over a hundred windows 11 machines. I recently push new software that I had to manually configure on each machine. While doing this I checked for problems. Over half had terminal and other programs like notepad installed separately. All the machines are in a domain environment but windows 11 ignores many of the GPO's I have in place. Its pathetic and just a reason to have to do more work. So I have no problem believing that terminal had been installed and then disabled due to some microsoft account nonsense.

Command prompt is slowly becoming legacy. Microsoft wants powershell to be its successor thus Terminal was born.

We use Windows 11 at work. One of the desktops has an error where you can log in but windows displays a notification to the effect of "You're not logged in, your settings and app preference aren't available."

Other than Edge most of the built in programs don't work. No errors, no notifications -- clicking the icon to open them does nothing. Notepad, file explorer, etc.