A First Look at Windows Cloud IO Keyboard Input Protection

As organisations continue adopting Windows 365 and Azure Virtual Desktop, the conversation around security has shifted from the data centre to the endpoint. We have locked down our tenants, hardened our images and deployed multi factor authentication everywhere. However one of the oldest security risks remains the simplest: keyboard input.

Malware and keyloggers on unmanaged or compromised endpoints can still intercept input before it reaches the secure Cloud PC or session host. Windows Cloud IO Keyboard Input Protection is Microsoft’s answer to that problem.

What It Does and How It Works

Windows Cloud IO adds a kernel level driver and a system level encryption service to the physical endpoint. When enabled, every keystroke is encrypted at source, transmitted securely and only decrypted inside the Cloud PC or AVD session host. This prevents local processes, malware or screen scraping tools from intercepting what the user types.

To enable the feature, both the physical endpoint and the Cloud PC or AVD session host must be configured.

Installation Steps

1. Prepare the Physical Windows 11 Device

Install the following in this order:

1. Update to the latest Windows App
   • Open the Microsoft Store and install or update the Windows App.
   • Minimum supported version is 2.0.704.0.
2. Install the Windows Cloud IO Protection MSI
   • Download the correct MSI package (x64 or ARM64).
   • Install using a local administrator account.
   • The endpoint must be a physical Windows 11 device with TPM 2.0.

If the MSI is not installed, the Windows App will block the connection and prompt the user to install the protector before proceeding.

2. Configure the Cloud PC or AVD Session Host

Microsoft supports enabling Keyboard Input Protection through Group Policy.
The registry keys below reflect what the GPO applies.

Only after these settings are in place will the Cloud PC or AVD VM accept connections from IO protected endpoints.

Enabling Keyboard Input Protection at Scale

Group Policy is the recommended and currently documented configuration method for enabling Windows Cloud IO Protection. Microsoft states:

“Currently the feature can only be enabled using Group Policy.”
Source: https://learn.microsoft.com/en-us/windows-365/enterprise/windows-cloud-input-protection

If you manage Cloud PCs or AVD session hosts using Intune instead of GPO, you can deploy the equivalent registry keys using a PowerShell script. This mirrors what the Group Policy setting applies, but GPO remains the officially supported method at this stage. Microsoft will hopefully introduce native Intune Settings Catalog and CSP controls in a future update.

Enable Windows Cloud IO Keyboard Input Protection

# Enable Windows Cloud IO Keyboard Input Protection for both Windows 365 and AVD

$path  = 'HKLM:\SOFTWARE\Policies\Microsoft\Windows NT\Terminal Services'
$name  = 'fWCIOKeyboardInputProtection'
$value = 1

try {
    # Create the key path if it does not exist
    if (-not (Test-Path -LiteralPath $path)) {
        New-Item -Path $path -Force | Out-Null
    }

    # Create or update the value
    if (-not (Get-ItemProperty -Path $path -Name $name -ErrorAction SilentlyContinue)) {
        New-ItemProperty -Path $path -Name $name -PropertyType DWord -Value $value -Force | Out-Null
    } else {
        Set-ItemProperty -Path $path -Name $name -Value $value
    }

    Write-Output "Windows Cloud IO Keyboard Input Protection has been enabled. A reboot is required."

    # Reboot the VM to apply the change
    Restart-Computer -Force
    exit 0
}
catch {
    Write-Error "Failed to apply registry setting. $($_.Exception.Message)"
    exit 1
}

Disable Windows Cloud IO Keyboard Input Protection

# Disable Windows Cloud IO Keyboard Input Protection for both Windows 365 and AVD

$path = 'HKLM:\SOFTWARE\Policies\Microsoft\Windows NT\Terminal Services'
$name = 'fWCIOKeyboardInputProtection'

try {
    if (Get-ItemProperty -Path $path -Name $name -ErrorAction SilentlyContinue) {
        Remove-ItemProperty -Path $path -Name $name -Force
        Write-Output "Windows Cloud IO Keyboard Input Protection has been disabled. A reboot is required."

        # Reboot the VM to fully remove the setting
        Restart-Computer -Force
    } else {
        Write-Output "Registry value not found. Nothing to remove."
    }

    exit 0
}
catch {
    Write-Error "Failed to remove registry setting. $($_.Exception.Message)"
    exit 1
}

Recommended Intune settings:

• Script runs as System
• Use 64-bit PowerShell
• Assign to your Windows 365 or AVD session host devices

Compatibility and Current Limitations

Supported:

• Windows 365 Cloud PCs
• Azure Virtual Desktop session hosts
• Physical Windows 11 devices with TPM 2.0 and the IO Protection MSI installed

Not supported:

• macOS
• iOS and Android
• Web client
• Virtual endpoints
• Windows 365 Link devices

The endpoint must be a physical Windows 11 device. Virtual devices cannot provide secure input.

Feedback From the Field

During private preview testing, I ran multiple scenarios across different endpoint devices and Windows 365 SKUs, including both Enterprise and Frontline. I tested with and without Windows Cloud IO Keyboard Input Protection enabled and everything functioned exactly as expected. Successful connections worked normally and non compliant devices were correctly blocked.

Most importantly, the keylogger on the local device did not capture any keystrokes when connected to a protected Cloud PC. This validates the effectiveness of the encrypted channel in real world conditions.

Windows 365 Cloud Apps also worked flawlessly during testing, with no performance or usability issues.

Early feedback has focused on improving administrator visibility. The most common requests include:

• A native Intune Settings Catalog control
• CSP policies for Cloud IO configuration
• A visible protection indicator in the Windows App
• Clearer error messages when a non compliant endpoint attempts to connect

These improvements are expected in future updates.

Why It Matters

Security depends on the endpoint, identity and the cloud working together. Windows Cloud IO Keyboard Input Protection strengthens the endpoint by protecting input before Windows or malware can intercept it. This reduces the risk of credential theft and improves the overall security posture of Cloud PCs and AVD.

With Windows 365 , Azure Virtual Desktop and modern Intune deployments continuing to expand, this is a simple and effective improvement to the security model without impacting performance or usability.