Go into Terminal Services Configuration | Connections | RDP-Tcp | right-click, choose "Properties" | Logon Settings | uncheck "Always prompt for password".
If the check box is grayed out, then it could have been configured by a Group Policy:
Windows 2003
- Open gpedit.msc
- Go to Local Computer Policy | Computer Configuration | Administrative Templates | Terminal Services | Encryption and Security"
- Disable "Always prompt client for password upon connection "
Windows 2008
- Open gpedit.msc
- Go to Local Computer Policy | Computer Configuration | Administrative Templates | Windows Components | Remote Desktop Services | Remote Desktop Session Host | Security
- Disable "Always prompt for password upon connection "
NOTE: The issue is not with TPAM and can be seen by connecting natively using mstsc and supplying the username and credentials. The user will connect, and then be prompted their credentials on the desktop.
This issue can also be caused by 3rd party credential providers. For more information refer to "Does TPAM support "Automatic Login" when using 3rd party credential providers"
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