Hi @Hans Ramiah,
Good catch! Glad the issue is resolved for you finally. I will have this answer promoted by reposting it. As an Original Poster will not be able to accept your own answer. This is in the attempt to help others looking for a solution for a similar issue.
Answered by Hans Ramiah
I managed to sort this out. In fact, I found a forum https://dae.me/blog/2533/windows-server-2019-remote-desktop-license-issue-with-user-cals/ that explained the issue. From my understanding, I had to use device CAL instead of user CAL. From what is on the forum, the user CAL requires AD.
Thanks again for sharing the solution here. Have a good day!