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I am trying to install Security Bulletin SC2023-002-576660 hotfix over the XP 9.3 and 10.3 instances. We have multiple Sitecore core server roles (CM, CD, Processing, Reporting, EXM Dispatch).

Do we need to install/sync same hotfix over the Processing and Reporting core role and is there any impact?

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Yes, the issue impacts all Sitecore XP Core server roles (Content Delivery, Content Management, Reporting, Processing, EXM Dispatch). Apply the solution to different roles. Refer FAQ section here

The bulletin outlines two approaches to resolve the vulnerability:

  1. Applying as a hotfix

  2. Applying as a patch

The main difference between these two options is that the patch only fixes the known attack vector (a specific method or pathway that cybercriminals have been observed using to exploit vulnerabilities in software or systems). At the same time, the hotfix addresses the vulnerability more comprehensively - covering scenarios beyond the known attack vector. Due to this critical difference, Sitecore strongly recommends applying hotfixes rather than installing the patch.

Reference: https://www.sitecoregabe.com/2023/04/sitecore-security-bulletin-hotfix-vs-patch.html

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