Windows 11 Upgrade fails with 0xc190012e

[goedderz]

After removing system encryption of a Windows 10 installation, an upgrade to Windows 11 fails with error 0xc190012e. Deleting or renaming the file C:\Users\Default\AppData\Local\Microsoft\Windows\WSUS\SetupConfig.ini solves the issue.

I noticed that the file contains

[SetupConfig]
ReflectDrivers="C:\Program Files\VeraCrypt"
PostOOBE=C:\ProgramData\VeraCrypt\SetupComplete.cmd

when the system encryption is in place, and gets reduced to

[SetupConfig]

after removing the system encryption. However, that essentially empty file seems to prevent Windows from upgrading. I've double-checked this on another machine, and got the same behavior.

[moesizlag]

+1
Same issue, deleting the file fixed it.

[mmmmmmmmmmmmmmmmmmmdonuts]

Oh wow, this issue affects more than just 10->11 as well. I was unable to update from Windows 11 to 24H2 version. It kept giving me this download error code. I deleted the file which was blank other than the [setconfig] line (after turning off veracrypt thinking it was that, without resolution). Deleting the file, immediately worked after months of failing updates! I'm not sure how you figured out this was the issue?? Thanks, so appreciative!

[Abillow1]

This issue also effected me, though I never fully encrypted my C drive. I had tried to, canceled it after forgetting the password on the trial run, then just not redoing it. This bypasses just about everything you can easily find online, and the built in things too. SFC, DSIM, the update troubleshooter, and the windows recover in place thing all fail. Oddly the windows recover in place gives error "0xc190012e" but the update gives error "0x80073712"

[AndrewsPanda]

Weird, I have never used VeraCrypt or had this machine encrypted but I was getting the same error for Windows 11 24H2 and deleting the file fixed it. Thank you!

[jkingsman]

+1, this also gave me problems on update 25H2. Weirdly, it was reporting this error in the download phase, which I didn't expect; I assume it was partway through an attempt and something glitched, but definitely odd.

[mmmmmmmmmmmmmmmmmmmdonuts]

+1, this also gave me problems on update 25H2. Weirdly, it was reporting this error in the download phase

This is also when it would fail for me too. It would get through the download to almost the end then fail