Good afternoon,
The behavior you describe is almost always tied to Group Policy or MDM policies overriding the local Windows Hello configuration. Since your environment is synchronized with Microsoft 365, you need to check both on-premises Active Directory GPOs and Intune/Endpoint Manager policies.
Start by reviewing the following in your local domain GPOs:
- Under Computer Configuration > Administrative Templates > Windows Components > Windows Hello for Business, confirm that “Use Windows Hello for Business” is set to Enabled. If this is set to Disabled or Not Configured, the client will revert after policy refresh.
- In the same path, check “Use biometrics” under Biometrics. This must be enabled, otherwise Windows Hello will be removed after gpupdate.
- Also verify Security Settings > Local Policies > Security Options > Interactive logon: Require Windows Hello for Business or smart card. If this is misconfigured, it can force deactivation.
On the cloud side, if you are using Intune, go to Endpoint Security > Identity Protection and check the Windows Hello for Business policy. Ensure that the configuration profile is consistent with what you want (PIN, biometrics, key trust vs. certificate trust). If there is a mismatch between AD GPO and Intune policy, the device will continuously reapply settings and cause the deactivation you’re seeing.
Finally, confirm that your Azure AD tenant is set to allow Windows Hello for Business. In the Microsoft 365 admin center, under Azure Active Directory > Devices > Windows Hello for Business, make sure the state is set to Enabled. If it is set to Disabled or Not Configured, the local setup will work temporarily but be removed after sync.
In short, the key policies to check are:
- Windows Hello for Business GPOs in Active Directory.
- Biometric usage policies in AD.
- Intune Identity Protection profiles if hybrid joined.
- Azure AD device settings for Windows Hello.
I recommend running gpresult /h c:\gporeport.html on the affected machine to see exactly which GPO is applying and overriding the Hello configuration. That will give you a definitive answer on whether the local environment is disabling it.
I hope you've found something useful here. If it helps you get more insight into the issue, it's appreciated to accept the answer. Should you have more questions, feel free to leave a message. Have a nice day!
Domic Vo.