Hello,
This issue might occur for the following reasons:
- The virtual machine might have been attacked.
- The local RSA encryption keys can't be accessed.
- TLS protocol is disabled.
- The certificate is corrupted or expired.
You can try the following steps to troubleshoot the problem:
- Check RDP security
Check to see whether the network security group for RDP port 3389 is unsecured (open). If it's unsecured and it shows * as the source IP address for inbound, restrict the RDP port to a specifc user's IP address, and then test RDP access. If this fails, complete the steps in the next section.
- Use the Serial Console or repair the VM offline by attaching the OS disk of the VM to a recovery VM.
To begin, connect to the Serial Console and open a PowerShell instance. If the Serial Console is not enabled on your VM, go to the repair the VM offline section.
- Repair the VM Offline
For more information, refer to: An internal error occurs when you make an RDP connection to Azure Virtual Machines - Azure | Microsoft Learn
In addition, try changing Security of RDP in Group Policy Editor:
Go to the Start Menu, search for Local Group Policy and open up ‘Edit group policy’. Navigate to the following directory:
Computer Configuration > Administrative Templates > Windows Components > Remote Desktop Services > Remote Desktop Session Host > Security
On the right-hand side, locate the ‘Require use of specific security layer for remote (RDP) connections’ and double-click it to edit it.
If it is set to ‘Not configured’, select Enabled and then in front of Security Layer, choose RDP. Click Apply and then hit OK.
Restart your system so that the changes take effect. Try connecting again.
Reference: Remote desktop connection: An internal error has occurred - Microsoft Q&A
Best regards
Jacen
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