It seems like Windows (11) does require a local password to log on via RDP. A few people have discussed this option already, but I would like to contribute another solution in case you can neither sign in with a local password nor create one (as was my case). The option to add a password, as shown above in solution 5 simply did not exist for me; my account is an online account.
This solution did not require any of the above steps, nor did it require me to turn Windows Hello (or the under Sol. 5 mentioned option) off.
If you are on Win 11 with Hello and 2FA, nothing else worked so far, and you can’t set or use a local Password, you might want to try this:
Sign out > inhibit Hello from signing you in, and click ‘sign-in options’ > click on ‘I forgot my pin’ > log in with your Microsoft account (and therefore your account Password) > approve the sign in request, in case you have 2FA > confirm that ‘you are sure’ to reset your PIN (you can set the same PIN again) > reset the PIN.
Thats it, all Windows needed was for you to sign in once with your account password. At least, this is the solution that worked for me.