The SENS issue is a result of the Microsoft policy to force people off of using the older authentication methods which still work in Windows XP, but for which they will not provide an update for Windows XP to enable the new methods.
Specifically, the BlockNTLMv1SSO registry key is changed from "Audit" to "Enforce".
Additionally, since the component OID path changes anytime the component version changes, the registry path cannot be specified normally in a .REG file, it can be simply reloaded after each update with a new componentis pushed by Microsoft on any given Patch Tuesday.
The first version of Windows, which supported the replacement for the old authentication mechanism, the new one being SPNEGO, was Windows 2000.
I suspect that many of the people doing the complaining for the login, have Windows XP clients.
If they are thin clients, this also explains the inability to log into the server to mount the network root volume.
This is very likely an attempt, which Microsoft knows very well that it is making, to put a stake in the heart of Windows XP, once and for all.
Any small business, I cannot afford to upgrade all of their computers at once — an incidentally, not pay for a Windows 11 license on all of those new computers at the same time — is likely buying any new computer to run a VM of Windows XP, so that they can continue to use the same small business stacks that they have been using in all of the other computers they use in their business, without having to replace them all at once.
Which, if you've ever owned or run a small business, you know will simply cause a cash flow business to go bankrupt paying a Microsoft tax.
Such businesses keep old computers, going for forever, or as long as they are "permitted" to keep them going, because every dollar spent on new hardware or new software is a dollar they cannot spend to keep their business afloat.
Microsoft on the other hand views, a non-accelerated amortization of a three year purchase cycle for their products, as lost revenue.
I would say these "unexpected issues" are more than likely a bullying tactic, but that's merely in my opinion, and as I've only been working in this business for 40 years, it's probably my inexperience that would lead me to believe that.
Authentication has always been the Sisyphean boulder that has been used in most integrated computer systems to punish them for not upgrading all of the networked computers and software at the same time.