MacOS RDP 10.7.5 - Multiple monitor issues

MacBook Pro 16 2019 (Intel).

Here is my layout:

Monitors above MacBook screen are 4K LG monitors connected using Thunderbolt.

Both external monitors use the same settings:

If I keep internal MacBook display to it's default scaling setting, "Use all monitors" setting does not work and resolution becomes 1024x768. 

Found a workaround - decreased the resolution on the built-in Retina screen a little:

Now RDP connects fine but the display layout during RDP connection is broken:

Mouse pointer moves correctly but dragging windows between monitors becomes very confusing.

Can this be fixed or adjusted?