KMS38 Activation is Broken: Microsoft Removes License Transfer Mechanism in Windows 11
Ddos 
The well-known MAS activation team reports that Microsoft has modified the KMS activation mechanism in Windows 11 and other systems. Following this change, beginning with the latest builds, the KMS grace period is no longer carried over — a shift that directly renders the KMS38 activation method inoperative.
KMS is Microsoft’s licensing model intended for enterprises and large organizations. It allows companies to deploy a local KMS server that issues activation licenses to devices within the network, each valid for 180 days and renewable upon expiration.
Originally, this system relied on a fragment-based KMS licensing mechanism that migrated the remaining grace period during system upgrades. For example, if 100 days of KMS validity remained before an upgrade, those 100 days would be transferred and accumulated afterward. The KMS38 activation method exploited this behavior to extend activation all the way to the year 2038.
Beginning with Windows 11 Build 26040, Microsoft removed the gatherosstate.exe file from ISO images — the component responsible for transferring KMS license information. As a result, after an in-place upgrade, the grace period is no longer preserved; it resets to zero. Reconnecting to a KMS server now restores only the standard 180-day activation window.
Starting with Windows 11 Build 26100.7019, Microsoft has fully deprecated the license-transfer mechanism. Consequently, KMS38 activation no longer functions in any subsequent versions, though earlier builds remain unaffected, and systems already activated via KMS38 will continue to operate normally.
Is this Microsoft cracking down on illegal activation?
Apparently not. When Microsoft previously disabled HWID digital activation, the MAS team observed that the company seemed largely uninterested in combating these unofficial methods. Instead, changes to activation have historically stemmed from Microsoft’s internal roadmap — and that earlier HWID disruption was merely a side-effect of unrelated adjustments.
Likewise, the alteration of the KMS grace-period mechanism appears to be another planned architectural change that inadvertently breaks KMS38. Other unofficial activation techniques — such as TSForge digital permanent activation — continue to function. This strongly suggests that Microsoft did not intentionally target these illicit activation methods, but rather that the failure of KMS38 is an unintended consequence of broader system refinements.
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