Fix “Trusted Platform Module Malfunctioned” Error in Microsoft 365

Overview

When activating Microsoft 365 applications, some users may encounter the error:

Trusted Platform Module malfunctioned

This issue is commonly related to corrupted Microsoft authentication tokens, Windows account enrollment conflicts, or TPM-related credential issues on the local computer.



Applies To

  • Microsoft 365 Applications
  • Windows 10 / Windows 11
  • Softdrive Virtual Machines
  • Microsoft account authentication

Prerequisites

  • Administrative access to the computer
  • Internet connection
  • Microsoft 365 account credentials

Procedure

1. Remove the Microsoft Account from Windows

Open the Windows Accounts settings:

  • Click the Start Menu
  • Select the Settings gear icon
  • Open Accounts
  1. Click:
    Access work or school
  2. Select your connected account and click:
    Disconnect
  3. Confirm the removal when prompted
  4. Wait for the un-enrollment process to complete
Important:

Ensure your internet connection remains stable during the un-enrollment process.

You should receive confirmation that the account was removed successfully.


2. Restart the Computer

Restart the computer to apply the account and credential changes.


3. Sign In Again to Microsoft 365

After restarting:

  • Open any Microsoft 365 application
  • Sign in again with your Microsoft account

When prompted with the device management screen:

Do NOT check:

Allow my organization to manage my device




After unchecking the option, you may choose:

  • Sign into this app only
  • Or sign into all Microsoft applications


Expected Result

Microsoft 365 applications activate successfully without TPM-related authentication errors.


Troubleshooting

  • Ensure the Microsoft account was fully removed before restarting
  • Verify the internet connection remains stable during reenrollment
  • Do not enable “Allow my organization to manage my device” unless specifically required by IT
  • Restart the computer again if authentication prompts persist
  • If the issue continues, contact support@softdrive.co