After you change your Microsoft 365 password, Teams may fail to install a pending update. The update process starts, then stops with an error that mentions sign-in, credentials, or a broken update cache. This happens because the Teams desktop app caches your previous authentication token and update credentials. When the password changes, the cached token becomes invalid, and the update service cannot authenticate to download the new version. This article explains the root cause and gives you a step-by-step fix that clears the stale credentials and lets the update install cleanly.
You will also learn how to avoid this problem in the future by using the correct sign-out method and by clearing the Teams cache folder when needed. The fix takes about ten minutes and requires no administrative tools beyond the standard Windows user interface.
Key Takeaways: Fixing Teams Update Failures After a Password Change
- Teams > Settings > Accounts > Sign out: Signing out from inside Teams clears the cached authentication token that blocks the update.
- %appdata%\Microsoft\Teams: Deleting this cache folder removes corrupted update files that prevent the installer from running.
- Windows Credential Manager: Removing the stored Teams and Microsoft 365 credentials forces a fresh authentication on the next launch.
Why Teams Cannot Install an Update After a Password Change
Teams uses a background updater service that runs every few hours. This service checks for new versions, downloads the installer, and then applies it. To download the installer, the updater must authenticate with the Microsoft 365 identity that is currently signed in to the desktop app. When you change your Microsoft 365 password, the authentication token stored in Teams becomes invalid. The updater tries to use the old token, fails, and then stops the update process.
The failure appears in different ways. You might see a toast notification that says “Update failed,” or the Teams window may show a red banner with the text “We couldn’t update Teams.” The update may also appear to hang at a blank window for several minutes before reverting to the old version. In all cases, the root cause is the same: the cached credentials no longer match the new password.
A second factor is the local cache folder. Teams stores downloaded update files in the folder %appdata%\Microsoft\Teams. If a previous update attempt was interrupted, that folder may contain corrupted files. The updater then skips the download and tries to apply the broken files, which fails again. Even after you fix the credentials, the corrupted cache can still block the update.
The solution has two parts. First, you must sign out of Teams properly so that the app discards the invalid token. Second, you must clear the cache folder to remove any broken update files. After these steps, Teams will prompt you to sign in again. The updater will then authenticate with your new password and install the latest version without errors.
Steps to Clear Stale Credentials and Install the Teams Update
Follow these steps in order. Do not skip the sign-out step, because simply closing the Teams window does not clear the cached token. The steps work for both Windows 11 and Windows 10.
- Sign out of Teams from inside the app
Open Teams and click your profile picture at the top right. Select Settings from the menu. In the Settings window, go to the Accounts tab. Find the Microsoft 365 account that is signed in and click Sign out. Wait for the sign-out to complete. This step revokes the cached authentication token. - Close Teams completely
After signing out, close the Teams window. Then right-click the Teams icon in the system tray at the bottom right of the taskbar. Select Exit to make sure the app is fully closed. If you skip this step, the updater may still be running in the background. - Open the Teams cache folder
Press Win + R to open the Run dialog. Type%appdata%\Microsoft\Teamsand press Enter. This opens the folder where Teams stores its local data and update files. If the folder is empty, the cache is already clear and you can skip the next step. - Delete the contents of the cache folder
Select all files and folders inside the Teams folder by pressing Ctrl + A. Then press Delete on your keyboard. Confirm the deletion if Windows asks. Do not delete the folder itself, only its contents. This removes corrupted update files and old cached data. - Clear stored credentials in Windows Credential Manager
Open the Start menu and type Credential Manager. Select the app from the search results. In Credential Manager, click Windows Credentials. Scroll through the list and find entries that contain MicrosoftTeams or Microsoft AAD. Click the arrow next to each entry and select Remove. Confirm the removal. This forces Windows to forget the old password for Teams. - Restart Teams and sign in with your new password
Open Teams from the Start menu or desktop shortcut. The app will start with a clean state. Enter your Microsoft 365 email address and click Next. Then enter your new password and click Sign in. Teams will now authenticate successfully. - Trigger the update manually
After signing in, Teams checks for updates automatically. To force the check, click your profile picture, select Check for updates from the menu. The updater will download and install the latest version. Wait for the progress bar to finish and then restart Teams when prompted.
If Teams Still Has Issues After the Main Fix
Teams Shows a Blank Window After Clearing the Cache
A blank window usually means that the cache deletion removed some files that were still in use. Close Teams completely using the system tray. Then reopen the app. If the blank window persists, restart your computer and launch Teams again. A restart clears any remaining file locks.
Teams Says “Update Failed” Even After Signing In With the New Password
This error can appear when the update download is blocked by a proxy or a firewall. Check your network connection and make sure that the domains teams.microsoft.com and statics.teams.cdn.office.net are reachable. If you use a corporate proxy, ask your IT team to allow these domains. Also, temporarily disable any VPN and try the update again.
Teams Will Not Start After the Update Installer Runs
If Teams fails to launch after the update, the installation may have left a broken file. Uninstall Teams from Settings > Apps > Installed apps. Then download the latest installer from the official Teams download page and run it. Sign in with your new password after the installation completes.
New Teams Desktop vs Teams on the Web: Update Behavior After a Password Change
| Item | Teams Desktop App | Teams on the Web |
|---|---|---|
| Update mechanism | Background updater service that requires cached credentials | Browser loads the latest version automatically |
| Effect of password change | Update fails because the cached token is invalid | No effect; the browser asks for credentials on the next sign-in |
| Cache folder | %appdata%\Microsoft\Teams stores update files | Browser cache, but not related to update installation |
| Fix method | Sign out, clear cache, clear credentials, then update | Sign in again with the new password |
If you need to use Teams immediately after changing your password, you can switch to Teams on the web while you fix the desktop app. The web version does not have the update cache problem, so it will work with your new password right away.
Conclusion
You can now fix a Teams update failure caused by a Microsoft 365 password change. Sign out of Teams, clear the cache folder, and remove the stored credentials in Windows Credential Manager. After signing in with your new password, Teams will install the latest update without errors.
To avoid this problem in the future, always sign out of Teams before changing your Microsoft 365 password. If you cannot sign out in advance, use the steps above to clear the stale credentials.
For a quick workaround, use Teams on the web while the desktop app is being fixed. The web version does not store update files, so it works immediately with your new password.