diff --git a/dev/Deployment/DeploymentActivityContext.cpp b/dev/Deployment/DeploymentActivityContext.cpp
index 73111979d0..40de107756 100644
--- a/dev/Deployment/DeploymentActivityContext.cpp
+++ b/dev/Deployment/DeploymentActivityContext.cpp
@@ -5,6 +5,11 @@
 
 #include "DeploymentActivityContext.h"
 
+#include <FrameworkUdk/Containment.h>
+
+// Bug 61543987: [1.8 servicing] Deployment exceptions masked as ERROR_UNHANDLED_EXCEPTION; SetLastFailure logging single chars
+#define WINAPPSDK_CHANGEID_61543987 61543987, WinAppSDK_1_8_7
+
 WindowsAppRuntime::Deployment::Activity::Context& WindowsAppRuntime::Deployment::Activity::Context::Get()
 {
     return g_DeploymentActivityContext;
@@ -37,7 +42,14 @@ void WindowsAppRuntime::Deployment::Activity::Context::SetLastFailure(const wil:
 
     if (failure.pszFile)
     {
-        m_lastFailure.file = *failure.pszFile;
+        if (WinAppSdk::Containment::IsChangeEnabled<WINAPPSDK_CHANGEID_61543987>())
+        {
+            m_lastFailure.file = failure.pszFile;
+        }
+        else
+        {
+            m_lastFailure.file = *failure.pszFile;
+        }
     }
     else
     {
@@ -48,7 +60,14 @@ void WindowsAppRuntime::Deployment::Activity::Context::SetLastFailure(const wil:
 
     if (failure.pszMessage)
     {
-        m_lastFailure.message = *failure.pszMessage;
+        if (WinAppSdk::Containment::IsChangeEnabled<WINAPPSDK_CHANGEID_61543987>())
+        {
+            m_lastFailure.message = failure.pszMessage;
+        }
+        else
+        {
+            m_lastFailure.message = *failure.pszMessage;
+        }
     }
     else
     {
@@ -57,7 +76,14 @@ void WindowsAppRuntime::Deployment::Activity::Context::SetLastFailure(const wil:
 
     if (failure.pszModule)
     {
-        m_lastFailure.module = *failure.pszModule;
+        if (WinAppSdk::Containment::IsChangeEnabled<WINAPPSDK_CHANGEID_61543987>())
+        {
+            m_lastFailure.module = failure.pszModule;
+        }
+        else
+        {
+            m_lastFailure.module = *failure.pszModule;
+        }
     }
     else
     {
diff --git a/dev/Deployment/DeploymentManager.cpp b/dev/Deployment/DeploymentManager.cpp
index f63eea6e16..11ad21001b 100644
--- a/dev/Deployment/DeploymentManager.cpp
+++ b/dev/Deployment/DeploymentManager.cpp
@@ -18,6 +18,9 @@
 // Bug 61124029: [1.8 servicing] Fixing reset activity data on deployment initialization
 #define WINAPPSDK_CHANGEID_61124029 61124029, WinAppSDK_1_8_6
 
+// Bug 61543987: [1.8 servicing] Deployment exceptions masked as ERROR_UNHANDLED_EXCEPTION; SetLastFailure logging single chars
+#define WINAPPSDK_CHANGEID_61543987 61543987, WinAppSDK_1_8_7
+
 using namespace winrt;
 using namespace winrt::Windows::Foundation;
 
@@ -209,9 +212,17 @@ namespace winrt::Microsoft::Windows::ApplicationModel::WindowsAppRuntime::implem
         {
             deploymentResult = _Initialize(initializeActivityContext, packageFullName, deploymentInitializeOptions, isRepair);
         }
-        catch (winrt::hresult_error const& e)
+        catch (...)
         {
-            const HRESULT hr{ e.code() };
+            const HRESULT hr = []() -> HRESULT {
+                if (WinAppSdk::Containment::IsChangeEnabled<WINAPPSDK_CHANGEID_61543987>())
+                {
+                    return wil::ResultFromCaughtException();
+                }
+                try { throw; }
+                catch (winrt::hresult_error const& e) { return e.code(); }
+                // Non-winrt::hresult_error exceptions propagate (old behavior)
+            }();
 
             auto packageIdentity{ AppModel::Identity::PackageIdentity::FromPackageFullName(packageFullName.c_str()) };
             PCWSTR c_packageNamePrefix{ L"microsoft.windowsappruntime." };
@@ -219,7 +230,7 @@ namespace winrt::Microsoft::Windows::ApplicationModel::WindowsAppRuntime::implem
             std::wstring release;
             if (CompareStringOrdinal(packageIdentity.Name(), -1, c_packageNamePrefix, -1, TRUE) == CSTR_EQUAL)
             {
-                release =  packageIdentity.Name() + c_packageNamePrefixLength;
+                release = packageIdentity.Name() + c_packageNamePrefixLength;
             }
             else
             {
@@ -242,7 +253,7 @@ namespace winrt::Microsoft::Windows::ApplicationModel::WindowsAppRuntime::implem
 
             THROW_HR_MSG(hr, "PackageFullName=%ls Options: ForceDeployment=%c OnErrorShowUI=%c isRepair:%c",
                          packageFullName.c_str(), deploymentInitializeOptions.ForceDeployment() ? 'Y' : 'N',
-                         deploymentInitializeOptions.OnErrorShowUI() ? 'Y' : 'N', isRepair ? 'Y' : 'N' );
+                         deploymentInitializeOptions.OnErrorShowUI() ? 'Y' : 'N', isRepair ? 'Y' : 'N');
         }
 
         // Success!
diff --git a/dev/RuntimeCompatibilityOptions/RuntimeCompatibilityOptions.idl b/dev/RuntimeCompatibilityOptions/RuntimeCompatibilityOptions.idl
index fef275fc8f..048a74db70 100644
--- a/dev/RuntimeCompatibilityOptions/RuntimeCompatibilityOptions.idl
+++ b/dev/RuntimeCompatibilityOptions/RuntimeCompatibilityOptions.idl
@@ -34,6 +34,9 @@ namespace Microsoft.Windows.ApplicationModel.WindowsAppRuntime
         AppLifecycle_SharedMemoryRedirectionQueueFix = 60972838,
         SplitMenuFlyoutItem_Available = 60878987,
         TextIntelligence_Insights = 61106039,
+
+        // 1.8.7
+        DeploymentManager_DiagnosabilityFix = 61543987,
     };
 
     /// Represents a version of the Windows App Runtime.
diff --git a/dev/WindowsAppRuntime_BootstrapDLL/MddBootstrapActivity.cpp b/dev/WindowsAppRuntime_BootstrapDLL/MddBootstrapActivity.cpp
index 219a015335..8d4faebdab 100644
--- a/dev/WindowsAppRuntime_BootstrapDLL/MddBootstrapActivity.cpp
+++ b/dev/WindowsAppRuntime_BootstrapDLL/MddBootstrapActivity.cpp
@@ -18,7 +18,7 @@ void WindowsAppRuntime::MddBootstrap::Activity::Context::SetLastFailure(const wi
 
     if (failure.pszFile)
     {
-        m_lastFailure.file = *failure.pszFile;
+        m_lastFailure.file = failure.pszFile;
     }
     else
     {
@@ -29,7 +29,7 @@ void WindowsAppRuntime::MddBootstrap::Activity::Context::SetLastFailure(const wi
 
     if (failure.pszMessage)
     {
-        m_lastFailure.message = *failure.pszMessage;
+        m_lastFailure.message = failure.pszMessage;
     }
     else
     {
@@ -38,7 +38,7 @@ void WindowsAppRuntime::MddBootstrap::Activity::Context::SetLastFailure(const wi
 
     if (failure.pszModule)
     {
-        m_lastFailure.module = *failure.pszModule;
+        m_lastFailure.module = failure.pszModule;
     }
     else
     {
diff --git a/dev/WindowsAppRuntime_BootstrapDLL/MddBootstrapAutoInitializer.cpp b/dev/WindowsAppRuntime_BootstrapDLL/MddBootstrapAutoInitializer.cpp
index f2aa32d42a..3077f4add0 100644
--- a/dev/WindowsAppRuntime_BootstrapDLL/MddBootstrapAutoInitializer.cpp
+++ b/dev/WindowsAppRuntime_BootstrapDLL/MddBootstrapAutoInitializer.cpp
@@ -4,6 +4,7 @@
 #include <Windows.h>
 #include <stdint.h>
 #include <stdlib.h>
+
 #include <MddBootstrap.h>
 #include <WindowsAppSDK-VersionInfo.h>
 
diff --git a/installer/dev/InstallActivityContext.cpp b/installer/dev/InstallActivityContext.cpp
index 567098b528..2fb196a181 100644
--- a/installer/dev/InstallActivityContext.cpp
+++ b/installer/dev/InstallActivityContext.cpp
@@ -4,6 +4,11 @@
 #include "pch.h"
 #include "InstallActivityContext.h"
 
+#include <FrameworkUdk/Containment.h>
+
+// Bug 61543987: [1.8 servicing] Deployment exceptions masked as ERROR_UNHANDLED_EXCEPTION; SetLastFailure logging single chars
+#define WINAPPSDK_CHANGEID_61543987 61543987, WinAppSDK_1_8_7
+
 WindowsAppRuntimeInstaller::InstallActivity::Context& WindowsAppRuntimeInstaller::InstallActivity::Context::Get()
 {
     return g_installActivityContext;
@@ -37,7 +42,14 @@ void WindowsAppRuntimeInstaller::InstallActivity::Context::SetLastFailure(const
 
     if (failure.pszFile)
     {
-        m_lastFailure.file = *failure.pszFile;
+        if (WinAppSdk::Containment::IsChangeEnabled<WINAPPSDK_CHANGEID_61543987>())
+        {
+            m_lastFailure.file = failure.pszFile;
+        }
+        else
+        {
+            m_lastFailure.file = *failure.pszFile;
+        }
     }
     else
     {
@@ -48,7 +60,14 @@ void WindowsAppRuntimeInstaller::InstallActivity::Context::SetLastFailure(const
 
     if (failure.pszMessage)
     {
-        m_lastFailure.message = *failure.pszMessage;
+        if (WinAppSdk::Containment::IsChangeEnabled<WINAPPSDK_CHANGEID_61543987>())
+        {
+            m_lastFailure.message = failure.pszMessage;
+        }
+        else
+        {
+            m_lastFailure.message = *failure.pszMessage;
+        }
     }
     else
     {