@~OSD~, Thanks for posting in Q&A. Based on my checking, there's a setting named "Deny Remote Desktop Services Log On" which determines which users and groups are prohibited from logging on as a Remote Desktop Services client. By default, Local account group (S-1-5-113) is added into the policy. That is to say, local account will be prevented from remoting to the device.
Please check if you have this setting configured in your security baseline and remove this setting to see if it works.
Hope the above information can help.
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