AVD Single Session - Password is incorrect - lockout screen

Hi Guys,

I hope you are all well.

Recently I set up these policies for my AVD env:

Set time limit for active but idle Remote Desktop Services sessions - Disabled

Set time limit for active Remote Desktop Services sessions - Disabled

Disconnect remote session on lock for legacy authentication - Disabled

Disconnect remote session on lock for Microsoft identity platform authentication - Disabled

The result is that the after some idle time session is not completely disconnected but AVD is being locking out, and that is good but - from lock screen I can't log-in again - I received info that the password is incorrect. In event viewer I see: Event ID 4673. From that place I can disconnect session, restart machine or add additional keyboard layout -> after I click "Update" I am being moved to Desktop, but still poor solution.

Password is definitely correct, account is not being locked out/disabled.

All machines are Entra ID Joined.

Any ideas?

Best regards,

Damian