Hi alecome,
The regression with Remote Desktop is a documented consequence of recent Windows 11 security enhancements. By default, these updates block inbound NTLM authentication to force the use of the more secure Kerberos protocol. Your local network environment lacks a central domain controller to issue Kerberos tickets, so your system drops the inbound RDP connection. To stop the cycle of rolling back updates, you can safely reconfigure your system to permit secure local authentication using built-in administrative tools.
Your first step is to instruct Windows to allow standard password authentication over the network instead of enforcing local Windows Hello credential isolation. Open the Registry Editor and navigate through HKEY_LOCAL_MACHINE to Software, Microsoft, Windows NT, CurrentVersion, PasswordLess, and finally the Device folder. Change the value of the DevicePasswordLessBuildVersion key to zero. This explicit adjustment tells the operating system to stop forcing a PIN-only or biometric requirement for network logins, ensuring the Remote Desktop service can process your standard user password without requiring a physical presence.
To complete the configuration, you must manually override the restrictive NTLM block using the Local Security Policy tool. Launch secpol.msc, navigate through Local Policies into Security Options, and locate the policy named Network security: Restrict NTLM: Incoming NTLM traffic. Changing its status to Allow all will restore your computer's ability to accept local network handshakes. To maintain a strict security posture, locate the adjacent policy named Network security: LAN Manager authentication level and set it to Send NTLMv2 response only. Refuse LM and NTLM. This precise combination allows your machine to successfully authenticate RDP sessions in your local environment while actively rejecting older, vulnerable protocols, keeping your workflow functional and your system securely updated.
Hope this answer has brought you some useful information. If it did, please hit “accept answer”. Should you have any questions, feel free to leave a comment.
VPHAN