Windows 10/11 'Action Needed' Microsoft Account Sign-In Popup Fix

The 'Action Needed' popup is real — and it's annoying

You're working, you're gaming, and then bing: a notification from Microsoft Account says "Action needed — Sign in to Microsoft account" with a red warning icon. It pops up every few hours. Clicking it takes you to a blank Settings page or an endless loop. I've seen this on Windows 10 versions 22H2 and Windows 11 23H2 after a recent Windows Update or after changing your password. The real error codes under the hood are usually 0x800704cf or 0x80070520, but you rarely see them. Here's the fix, from fastest to nuclear.

30-second fix: Toggle the web sign-in setting

This works about 60% of the time. It's stupid-simple but it forces Windows to reauthenticate your account.

1. Open Settings (press Windows + I).
2. Go to Accounts > Email & accounts.
3. Under Accounts used by email, calendar, and contacts, you'll see your Microsoft email address. Click it.
4. Click Manage (or Sign in with a Microsoft account instead if it's a local account).
5. A window pops up. Don't change anything yet. Just close that window.
6. Now go back one step and click Sign-in options (on the left sidebar).
7. Under Manage how you sign in to your device, turn OFF the toggle for Improve sign-in security by requiring Windows Hello sign-in for Microsoft accounts (this is sometimes called "Windows Hello phone sign-in").
8. Wait 5 seconds. Turn it back ON. Then sign out and sign back in.

What should happen: After signing back in, the popup should stop for at least 24 hours. If you still see it within the next hour, move to the 5-minute fix.

5-minute fix: Clear your stored credentials and re-link

If the toggle trick didn't stick, the problem is probably a stale or corrupted token in Windows Credential Manager. This is common after you change your Microsoft password on another device.

1. Press Windows + R, type control, and hit Enter to open the old Control Panel.
2. In the search box (top-right), type Credential Manager and click it.
3. Click Windows Credentials (not Web or Certificate).
4. Scroll down to Generic Credentials. Look for anything starting with MicrosoftAccount: or MicrosoftOffice or OneDrive. Here's the list you delete:

MicrosoftAccount:user=you@outlook.com
MicrosoftOffice16_Data:ADAL:you@outlook.com
WindowsLive:target=you@outlook.com

Delete each one by clicking the arrow on the right and selecting Remove. Confirm any prompts.

Important: Do NOT delete anything labeled WindowsLive:target=virtualapp or Microsoft Account entries for system services. Just the ones with your email.

5. Close Credential Manager. Open Settings again, go to Accounts > Your info.
6. Click Verify under the section that says "Verify your identity on this PC". It will ask for your password. Type it.
7. Wait 30 seconds. Close Settings. Restart your computer.

What should happen: After restart, the popup should be gone. If you still see it after an hour, skip to the advanced fix.

15+ minute fix: Nuke the Microsoft account and re-add it

This is the nuclear option. You're going to remove your Microsoft account from Windows entirely, then re-link it. This fixes deep corruption. You won't lose files, but you will need to re-enter your password for OneDrive, Office, and the Store after. Back up any unsaved work first.

1. Open Settings > Accounts > Email & accounts.
2. Click your Microsoft email, then click Remove (or Sign out). A warning will say you'll lose access to apps that use this account — it's fine. Click Remove again.
3. Now go to Your info (left sidebar).
4. Under Account settings, you'll see "Sign in with a local account instead". Click it. Follow the prompts to create a temporary local account. Write down the local username and password — you'll need it in a second.
5. Sign out of Windows. Sign back in with the local account you just created.
6. Open Settings again: Accounts > Your info > Sign in with a Microsoft account instead.
7. Enter your Microsoft email and password. It will ask you to link the accounts — say yes.
8. Wait for Windows to sync. This can take 2-3 minutes. You'll see the settings page say "You're signed in with your Microsoft account".
9. Restart one more time.

What should happen: The popup is gone. Your files, desktop, and browser bookmarks are back exactly as before. If you still see the popup after this (rare), the problem is likely a group policy or a corrupted Windows profile. That's a separate issue — you'd need to create a new Windows user profile.

One more thing: Check for a hidden notification

Sometimes the popup isn't from Microsoft at all — it's from OneDrive or Microsoft Store asking you to re-authenticate. Open OneDrive from the system tray (right-click the cloud icon), click Settings > Account > Unlink this PC, then re-link. For the Store, open it, click your profile picture, choose Sign out, then sign back in.

If none of this works, you might have malware trying to phish your credentials. Run a full scan with Windows Defender (Settings > Privacy & security > Windows Security > Virus & threat protection > Scan options > Full scan). But honestly, 99% of the time, the 5-minute credential wipe fixes it.