Windows 11 KB5120998 Update: Features, Cursor and Wallpaper Issues, and Fixes

1. What's New in Windows 11 KB5120998?

Taskbar Improvements

You can choose a bottom, top, left, or right taskbar position from Settings > Personalization > Taskbar > Taskbar behaviors > Taskbar position. Flyouts, animations, and options such as never combining icons work in the new locations. The Search box and smaller-taskbar option are currently supported only at the top or bottom. A separate Taskbar size control reduces both icon size and taskbar height, which is useful on compact laptops.

Start Menu Improvements

The Start menu now offers Automatic, Small, and Large sizing under Settings > Personalization > Start. Microsoft renames Recommended to Recent and adds section-level controls for Pinned, Recent, and All, allowing a cleaner layout without changing global display scaling. You can also hide your name and profile picture, which is helpful when presenting or recording the screen.

Windows Search Improvements

Search Home is simplified to reduce clutter and surface recent searches more clearly. Results now identify whether they come from an app, setting, local file, the web, or Microsoft Store. A new Privacy & security > Search control lets you decide whether web and Store suggestions appear beside local results. Windows can also index frequently used folders automatically, improving future file discovery; the behavior remains configurable.

Beyond the headline interface changes, KB5120998 delivers a smoother and more dependable day-to-day Windows 11 experience by refining core navigation, update behavior, and background services.

2. Known Issues with KB5120998

Mouse Cursor Customization Issues

On some non-English Windows installations, KB5120998 resets mouse personalization to standard settings. Custom pointers and pointer animations fail to load, and manually reselecting them may not stick because Windows continues loading the default values. Microsoft is preparing a resolution for a future update.

Black Wallpaper or Desktop Issues

Some affected PCs load a solid black desktop instead of the chosen wallpaper, while slideshow or contrast-theme choices may also fail. Reselecting the wallpaper may not solve the problem permanently.

Fix:

Since Windows KB5120998 is optional, affected users can consider uninstalling it from Settings > Windows Update > Update history > Uninstall updates while waiting for a correction.

ARM App-Launch Issue

A related issue on ARM-based devices: Teams and the new Outlook may fail to launch or close unexpectedly, particularly on newly configured PCs missing Store updates.

Fix:

The documented workaround is to open Microsoft Store, select Downloads > Check for updates, and install Auto Super Resolution Package version 1.0.19.0 or later.

3. KB5120998 Fixes and Improvements

Beyond the visible features, the update includes focused production-quality fixes rather than one broad performance claim.

System and Performance Fixes

• Touchpad gestures and mouse-drag actions respond more reliably on affected devices.
• PCs manually placed into sleep can return to sleep after an update restart, even when automatic sleep is set to Never.
• The servicing stack is updated to improve the reliability of the Windows installation process.
• VPN-process recovery and Japanese IME responsiveness receive targeted reliability improvements.

Windows UI, File Explorer, and Search Fixes

The KB5120998 update improves system-tray loading, Display settings navigation, virtual desktop transitions, File Explorer Home responsiveness, and search-result labeling. It also improves Narrator Natural Voices setup, Japanese input in RemoteApp, and Japanese search behavior in classic Outlook. These refinements are specific corrections; they do not guarantee faster performance in every application.

⚡ Not Enough Disk Space for KB5120998? Try 4DDiG Partition Manager

The Catalog package can be several gigabytes, and Windows needs temporary space to stage, verify, and roll back an update. If cleanup is insufficient but another partition on the same physical disk has unused space, 4DDiG Partition Manager can reallocate it to extend the system partition. Back up important files and connect a laptop to power first.

• Install and launch 4DDiG Partition Manager. Select "Partition Management" in the left navigation bar. Then select the partition you want to resize or move. Click "Resize/Move" in the below menu.

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• In the pop-up window, drag and drop the borders of the selected partition to change its size. Alternatively, you can enter a specified partition size in GB. Once the partition size is set, you can preview the result of the changes you made. If you are satisfied with it, click OK to proceed.

  

• And check the information. If sure, click OK to start. The partition resizing process will start immediately and will take some time.

  

• Wait until the partition size is adjusted as expected and click Finish.

  

Conclusion

Windows 11 KB5120998 is a preview update that brings several welcome personalization and usability changes, but early reports also point to cursor resets, black wallpapers, taskbar glitches, and installation failures on some PCs.

Before you install it, it is worth checking the known issues and making sure your system drive has enough room; if C: is tight, 4DDiG Partition Manager can help extend the partition using available space on the same disk.