Server 2016 Domain member server Policy in effect prevents connecting to print queue

That message can reflect an effective printer policy or a driver-installation restriction; changing several Point and Print settings does not establish which one is blocking this terminal server.

I would not leave RestrictDriverInstallationToAdministrators at 0 as the routine fix. Microsoft explicitly warns that this makes devices vulnerable and that other mitigations are not equivalent to keeping it at 1. The same article says changing that registry value requires no restart.

On the affected server, run gpresult /h gp.html from an elevated prompt and inspect the applied computer and user printer policies. Check Point and Print Restrictions and Package Point and Print – Approved servers against the actual print-server name used by the connection.

Then test installation with administrator credentials while retaining the driver-installation restriction. If that fails too, collect the exact error, driver name/version, print-server name, and effective policy report. Those results distinguish a policy rejection from an elevation-only problem.