Of course, after typing your domain user and password the connection succeeds, but why was this dialog necessary?
1. On your Windows 7 client, click Start, input gpedit.msc in search bar, press Enter. This starts Group Policy Editor. and accept the UAC prompt.
6. Do the same thing for the following policies:
- Allow Delegating Saved Credentials
- Allow Delegating Default Credentials with NTLM-only Server Authentication
- Allow Delegating Default Credentials
7. Make sure that “Deny Delegating Saved Credentials” is not enabled or does not contain “TERMSRV/*” in the list
8. Close all windows.
9. Open a command prompt and use “gpupdate /force” command to apply the policy directly.
PPS : If you want to apply the solution above to all Remote Compputers, you can use “TERMSRV/*” in step 4 (instead of entering every computer manually).
Since we’re speaking of group policies, it worth mentioning another setting here, “Allow Delegating Default Credentials”, which helps making TS connections to a remote server (in the same domain) without being prompted at all for credentials (current Windows user’s credentials are used for the remote server). For more information on this see Mahadev Alladi’s blog article which inspired the settings in my case, too.
The video below shows these steps in action .