Tested: Why Remote Desktop Protocol (RDP) rejects Microsoft account logins

A recent issue, albeit not widespread, has left some users grappling with a frustrating scenario: the Remote Desktop Protocol (RDP) is refusing to accept Microsoft Account (MSA) credentials, even when the correct details are entered. Users encountering this problem may see an error message stating, “Your credentials did not work: The credentials there were used to connect to [network name] did not work. Please enter new credentials.”

This issue can stem from various technical factors, some of which are straightforward to address, while others may require more intricate troubleshooting or even intervention from Microsoft or third-party service providers.

Why is RDP rejecting Microsoft account logins with the “Your credentials did not work” error?

Reflecting on personal experiences and research into Remote Desktop Connection logins, several common issues emerge:

  • Credential Validation Fails: The operating system may struggle to confirm the authenticity of MSA logins. This is a frequent occurrence, and often, it’s not something end users can resolve independently. The process requires interaction with Microsoft servers over the Internet, which can be affected by various issues, including connectivity, DNS, or network protocol problems.
  • Problems with Secure Channel Negotiation: RDP relies on secure channels for credential exchange. If this handshake process fails, authentication cannot proceed, making it challenging to differentiate this failure from the previous one.
  • Time Synchronization or DNS Resolution Issues: A mismatch in system clocks or DNS lookup failures can disrupt credential verification. Ensuring that the system’s date and time are accurate (via Settings > Time & Language > Date & time > Sync now) and adjusting DNS settings can sometimes resolve the issue.
  • Misconfigured Credential Policies: Group policy or local security policy misconfigurations may block MSA logins over RDP. For further insights, users can refer to the MS Learn guide on configuring security policy settings.

I investigated potential RDP and MSA login conflicts

Beyond the basic issues outlined above, other factors can complicate RDP connection problems. A deeper investigation into account setup and requirements for “problem MSAs” may be necessary if the account itself is not at fault. This can be frustrating, as I have discovered on several occasions, and may warrant a closer look at policies, security settings, and user profiles.

It’s important to note that delving into these issues can become complex for those unfamiliar with such analysis and troubleshooting. Therefore, creating an image backup before making significant changes is advisable.

In my exploration of deeper causes, I’ve found that Network-Level Authentication requirements can sometimes hinder RDP access. This setting is still accessible only through Control Panel > System Properties on the Remote tab. If an MSA does not meet specific security requirements, such as two-factor authentication (2FA), RDP may refuse to establish a remote connection.

If the checkbox under Remote Desktop, Allow remote… that reads “Allow connections only …with Network Level Authentication…” is checked, account issues can block remote access.

Other potential obstacles to remote access for MSAs include account restrictions or conditional access policies, which may require compliance with specific conditions or security checks. Additionally, if the user profile associated with the MSA is corrupt, RDP authentication may fail. Software conflicts or updates, particularly with recent Cumulative Updates or third-party security tools, can also interfere with MSA logins.

This pattern has been observed frequently with Insider Preview builds across all channels. Microsoft typically addresses such issues promptly with new updates or versions. However, the underlying network infrastructure, including firewalls, port restrictions, or network segmentation, can also impede RDP from successfully authenticating an MSA. While the account may be recognized, something may still obstruct the connection between the remote access client and host.

What to do when Microsoft account authentication fails when using RDP?

When MSA authentication fails, one effective workaround is to create a local administrator account on the target machine, for instance, named LocalOnly. Utilizing these credentials for RDP access can often facilitate a successful connection, although it may limit access to certain user-specific files or settings tied to the MSA profile.

When my MSA doesn’t work, I’ll set up an admin account named “LocalOnly” specifically for RDP login.

Some RDP login issues may trigger error messages indicating that login credentials are invalid or that “LSA cannot be contacted” (where LSA stands for Local Security Authority). In such cases, users should check for recent Windows updates, review security software logs, and consult network policies if issues persist despite other fixes.

In my local network, I manage nine PCs for remote sessions. Currently, seven function seamlessly with an MSA, while two necessitate a local account for a successful connection. Affected Windows versions include 24H2 and 25H2, particularly within Insider Previews in the Beta or Canary channels. As Microsoft enhances security and integrates more cloud-based identity features into Windows 11, occasional incompatibilities like RDP access challenges are likely to arise. Maintaining current system updates and good configuration practices can help mitigate these login challenges, while the local admin account approach remains a reliable workaround when MSA logins falter in Remote Desktop Connection.

Winsage
Tested: Why Remote Desktop Protocol (RDP) rejects Microsoft account logins