Automatic Login does not work when connecting to a Windows Domain Controller or Member.
Interactive Login works as expected using the same managed account and system.
A group policy has been enforced on the managed system. This setting "Always prompt client for password upon connection" has been enabled.
Description: Specifies whether Terminal Services always prompts the client for a password upon connection. This setting enforces a password prompt for users logging on to Terminal Services, even if the password has been provided in the Remote Desktop Connection Client.
By default, Terminal Services allows users to automatically log on by entering a password in the Remote Desktop Connection client.
If the status is set to Enabled, user cannot automatically log on to Terminal Services by supplying their passwords in the Remote Desktop Connection client. They are prompted for a password to logon.
If the status is set to Disabled, users can always log on to Terminal Services automatically by supplying their passwords in the Remote Desktop Connection client.
1. Open and edit the applicable Group Policy Object.
2. Browse to the following location.
For Windows 2003 Server
Browse to Computer Configuration | Administrative Template | Windows Components | Terminal Services | Encryption and Security | "Always prompt client for password upon connection"
3. Change the setting to "Disabled" or "Not Configured"