"NTVDM.EXE has encountered a problem and needs to close" error after installing the security update KB2707511

After installing the security update KB2707511 when I attempt to open a 16 bit ms-dos program I receive the following error: "NTVDM.EXE has encountered a problem and needs to close". Application fails to start. I can run command.com without errors. Uninstall KB2707511 in control panel, add&remove, application works. Install KB2707511 error occurs.
 
Question Info

Last updated August 8, 2018 Views 45,411 Applies to:
Answer

I have many customers running a 16 bit ms-dos program that are receiving the same error.  It does not appear to be a malware problem as it is uniform across many machines (unless all of them have the same malware problem).  By uninstalling both KB2707511 and KB2709162 they all work. Something in these updates is conflicting with something in these dos programs causing the 'NTVDM.EXE erorr'.  

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