RDP RemoteApp disconnected because of a protocol error (code: 0x112f) (4321952)

Connecting to RDP RemoteApp fails with the following: 

RemoteApp Disconnected

Because of a protocol error (code: 0x112f), the remote session will be disconnected.
Please try connecting to the remote computer again. 

Error in RDP logs:

Error information received from server; error='ERRINFO_GRAPHICSSUBSYSTEMFAILED', code='0x0000112f'

SPS is unable to handle RemoteFX graphic functions of the target server so connecting to such servers is not possible. 

In the target server RemoteFX function has to be disabled for RemoteApps to work with SPS.

Please refer to the prerequisites for Configuring RemoteApps in Administration Guide:

You must disable the Use advanced RemoteFX graphics for RemoteApp group policy on the RDP server.

The policy is available at Computer Configuration > Policies > Administrative Templates > Windows Components > Remote Desktop Services > Remote Desktop Session Host > Remote Session Environment > Use advanced RemoteFX graphics for RemoteApp.