Switching to Windows Hello Causes Unrecoverable Issue

1. Describe the bug

after enabling / switching to windows hello the extension can no longer auth with bc saas systems.

2. To Reproduce
Steps to reproduce the behavior:

1. use the extension to auth with a bc saas system.
2. enable windows hello, restart you machine, etc.
3. start vs code, try and auth with the same bc system, get an error
4. it's possible it'll error with any saas system, but I didn't have a new one available to test with.

[2026-07-21 13:24:54.38] Starting a debug session using launch configuration 'Attach: Microsoft cloud sandbox' .
[2026-07-21 13:24:54.55] Error: Key not valid for use in specified state
[2026-07-21 13:24:54.55] Error: An internal error has occurred

3. Expected behaviour
I am not expecting to have the credentials cache available, however I would expect it to be able to make a new cache, if that makes sense. The same way git recognizes it needs me to login, copilot, signal, etc.
to work around this I had to

1. uninstall the extension
2. close vs code
3. delete the extension folder
4. start vs code
5. re-install the extension

if you can tell me which file in that folder is the actual guilty party I will be happy to note that internally.

4. Actual behaviour
Hard error that cannot be resolved.

5. Versions:

• AL Language:17.0.2273547
• Visual Studio Code:1.129.1 (system setup)
• Business Central:saas 28

Final Checklist

Please remember to do the following:

• Search the issue repository to ensure you are reporting a new issue

• Reproduce the issue after disabling all extensions except the AL Language extension

• Simplify your code around the issue to better isolate the problem

Internal work item: AB#649196

No source file or test is named. Start by reproducing the failure in the AL Language extension's VS Code authentication flow after enabling Windows Hello, then trace the credential-cache handling around the reported “Key not valid for use in specified state” error. Done means authentication can recover by creating a new cache instead of requiring extension-folder deletion and reinstallation.