Hello,
If the policy is not present, then it could be that the VM can't communicate due to having a set restriction in place after applying other GPO. If that is the cause, then you would have to configure it so it accepts communication.
If you follow the Interoperability matrix on the link you share, you can check if any of the "Blocked" scenarios is the one you have. Also, search the System Event Logs for EventID 6041, to confirm if it's really the CredSSP or a false positive as you suspect. You ca pair that with the corresponding RDP event to confirm your scenario.
If it was only a false positive, you would be able to connect despite the message. Check the different combinations of connection blocked scenarios to find how to solve the block.