This Update Trusts The Microsoft Store But Not New Microsoft Logins
Welcome to Windows 11, unless you just set up new Microsoft logins to either license a new machine or to add users to an existing one. It seems that KB5016691 comes with a drawback as well as benefits to those that print over USB. Once the patch is applied, most people will find that new Microsoft logins are unable to sign in for a brief time after the initial restart or after signing out. Apparently this should only happen once; arguably that is at least one time too many if Microsoft wants to be more successful in convincing people to move to Windows 11.
The Register looked into Microsoft’s response to this, which is that “The issue only affects the newly added Microsoft account user and only for the first sign in”, adding that it does not apply to AD nor Azure based accounts. For now, you can either put up with it or use the rollback tool to remove the update.
On the other hand, removing the update will also remove the intended effects of the update, which fixes USB printer issues, Bluetooth and even issues Microsoft Edge in IE mode. If you need to know how to revert, The Register was kind enough to offer steps in their article.