AVD user unable to unlock Shared Desktop

User can connect fine when they initiate session from Remote Desktop app. However, our local machine policy locks screen after 15 minutes idle time. This particular user is unable to unlock screen and user gets the error "Logon failure: the user has not been granted the requested logon type at this computer".

Checked event viewer on the session host, and it logs event with event id 4625 and failed logon type 7. Which is unlock screen error.

I haven't reset the FSLogix profile of the user, which could be the culprit.