This policy setting determines whether the LAN Manager (LM) hash value for the new password is stored when the password is changed. The LM hash is relatively weak and prone to attack compared to the cryptographically stronger Microsoft Windows NT hash. Since LM hashes are stored on the local computer in the security database, passwords can then be easily compromised if the database is attacked. Note: Older operating systems and some third-party applications may fail when this policy setting is enabled. Also, note that the password will need to be changed on all accounts after you enable this setting to gain the proper benefit. The recommended state for this setting is: Enabled. Rationale: The SAM file can be targeted by attackers who seek access to username and password hashes. Such attacks use special tools to crack passwords, which can then be used to impersonate users and gain access to resources on your network. These types of attacks will not be prevented if you enable this policy setting, but it will be much more difficult for these types of attacks to succeed. Impact: None - this is the default behavior. Earlier operating systems such as Windows 95, Windows 98, and Windows ME as well as some third-party applications will fail.
Solution
To establish the recommended configuration, set the following Device Configuration Policy to Enabled: To access the Device Configuration Policy from the Intune Home page: Click Devices Click Configuration profiles Click Create profile Select the platform (Windows 10 and later) Select the profile (Custom) Enter a Name Click Add Enter the Details below Name: <Enter name> Description: <Enter Description> OMA-URI: ./Device/Vendor/MSFT/Policy/Config/LocalPoliciesSecurityOptions/NetworkSecurity_DoNotStoreLANManagerHashValueOnNextPasswordChange Data type: Integer Value: 1 Select Save Continue through the Wizard to complete the creation of the profile (profile assignments, applicability etc.) Note: More than one configuration setting from each of the Configuration profiles (ex: Administrative Templates, Custom etc.) can be added to each Device Configuration Policy. Note #2 This recommendation can also be set using the Endpoint protection profile using Local device security options/Network access and security settings. Default Value: Enabled. (LAN Manager hash values are not stored when passwords are changed.)