Outlook m365, on RDS with profile disks keeps asking for credentials

Question

In a local domain environment without Azure AD synchronization, you have an RDS (Remote Desktop Services) server with profile disks for users and a single app server. The PCs in this setup have local accounts within the local domain.

When a user logs into their PC and uses a Remote Desktop (RD) icon to connect to the RDS server, they encounter an issue with Microsoft 365 (M365) Outlook. Specifically, for each M365 account configured in their mail profile, they are required to input their credentials every time they open Outlook.

For example, if a user has 10 M365 exchange addresses in their Outlook profile, they must authenticate 10 times. Interestingly, once the RDS session is active, Outlook can be restarted without prompting for re-authentication. However, as soon as the user logs off from the RDS session and logs back in, they are once again prompted to log into Outlook.

This issue isn't unique to just one user; other users are facing similar problems. Some users have fewer M365 accounts, perhaps just two, but they still need to authenticate each time they start a new RDS session.

In summary, the problem revolves around users having to repeatedly authenticate their M365 accounts in Outlook when accessing it through the RDS sessions, with the need to re-authenticate after logging off and back in.

I noticed that a specific folders are deleted when the user logs back in. Not when logging off. Because when I mount the profile disk after the users is logged of, all contents are there in

C:\Users<username>\AppData\Local\Packages\Microsoft.AAD.BrokerPlugin_cw5n1h2txyewy\AC_TokenBroker\Accounts_

But as soon as the user logs in, the content of the AC folder is deleted.