“It’s possible other products which rely on this feature are also affected, including smart card authentication products, third-party single sign-on (SSO) solutions, and identity management systems,” said Microsoft.
So, not every user is impacted by any means, but enough to generate time-consuming support calls in some organizations, and that’s on top of any problems created with machine-to-machine authentication.
Microsoft recommendations
“User impact only occurs when registry key AllowNtAuthPolicyBypass is set to a value of ‘2’. To prevent the resulting logon failures, temporarily revert AllowNtAuthPolicyBypass from ‘2’ to ‘1’ as documented in the Registry Settings section of KB5057784,” Microsoft’s advisory offered as a workaround.