gMSA broken in 2026.3?

So I upgraded to 2026.3 yesterday, and I'm having issues with gMSA credentials.

I have jobs that fail with the following error message:

Error executing job: Failed to login user (1326). System.ComponentModel.Win32Exception (1326): The user name or password is incorrect.

It uses the non-builtin Powershell 7 Environment

I have a dedicated API environment which runs as a gMSA using it now results in 404 Client Error (No log text in the log-tab, and no other discernable information I can find)

I've double checked the service account using Test-ADServiceAccount which returns true for the gMSA, the service runs as LocalSystem. I tried creating a new variable (with the same gMSA) and this also fails.

I do have an odd error in PowerShellHost logs which I do not think happened prior to the upgrade:

2026-09-15 23:37:28.829 +02:00 [ERR] Error checking module path 
System.ArgumentException: The path is not of a legal form.
   at System.IO.Path.NormalizePath(String path, Boolean fullCheck, Int32 maxPathLength, Boolean expandShortPaths)
   at System.IO.Path.InternalGetDirectoryName(String path)
   at UniversalHost.AgentService.Initialize(IHostLogger logger) in D:\a\powershell-universal\powershell-universal\src\Host\AgentService.cs:line 48

Environment:

Windows Server 2022 (The CU for this month has not been installed)
PSU Version 2026.3