Symptoms
This issue may occur when you enable the Automatically detect intranet network feature for the local intranet zone and the proxy bypass feature in Internet Explorer 11.
Resolution
Update information
To resolve this problem, install the most recent cumulative security update for Internet Explorer. To do this, go to Microsoft Update.
For technical information about the most recent cumulative security update for Internet Explorer, go to the following Microsoft website:
http://www.microsoft.com/technet/security/current.aspxNote This update was first included in security update 2976627.
For more information about security update 2976627, click the following article number to view the article in the Microsoft Knowledge Base:
2976627 MS14-051: Cumulative security update for Internet Explorer: August 12, 2014
More Information
After you upgrade to Internet Explorer 11, you may see hosts that should belong to the local intranet zone identified as being in the Internet zone. This causes multiple issues that result in the failure to perform Windows Integrated Authentication automatically.
Status
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.
References
See the terminology that Microsoft uses to describe software updates.