Yep. If the network is local only and can’t reach Azure (for Entra) or the Domain Controller (for AD) that we’re saying is at another physical location, then there’s no way for the machine to see the new password. It will continue to accept the old cached password until that network issue is resolved.

But that’s always been the case. It’s how Windows NT and forward work. In that scenario, you could only reach the machine over RDP if you were on another machine on that isolated network.