Virtual Machine: RDP licensing error — Intermittent access issues since September 15, 2026

MarinaS 0 Reputation points
2026-10-02T20:32:53.9433333+00:00

Problem description

I am experiencing intermittent RDP licensing errors on my Windows-based Azure Virtual Machines, specifically affecting two session host servers named RDS1 and RDS2. The issue started around September 15, 2026, and affects all users attempting to connect. Restarting either server temporarily restores access, but the problem recurs daily.

Environment

Azure Virtual Machine running Windows; Two Windows servers used as RDS/application hosts; Region: Canada East; Approximately 42 users depend on this environment.

What I've already tried

I have documented that restarting the affected server restores access temporarily. No other troubleshooting steps or configuration changes have been recorded. I have checked that the license server is up and running, and the license server appears to be configured correctly.

Current status

I am seeking guidance on how to resolve the recurring RDP licensing errors permanently, including verifying licensing configurations, certificate states, and network connectivity between session hosts and the license server.

Windows for business | Windows Server | User experience | Remote desktop services and terminal services
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  1. Jason Nguyen Tran 27,210 Reputation points Independent Advisor
    2026-10-02T21:32:07.95+00:00

    Hello,

    Based on your description, the behavior suggests that the session hosts may be temporarily losing communication with the Remote Desktop Licensing Server or encountering a licensing service/configuration issue that is only masked when the servers are restarted.

    As a first step, I recommend verifying that both RDS1 and RDS2 are configured with the correct licensing mode (Per User or Per Device) and that the specified license server is being applied consistently through Group Policy or local configuration.

    In addition, review the Event Viewer logs on the session hosts and licensing server, specifically under Applications and Services Logs > Microsoft > Windows > TerminalServices-Licensing and TerminalServices-RemoteConnectionManager, for licensing, certificate, or connectivity-related errors occurring before users are denied access. Since the issue is recurring daily, I would also recommend validating DNS name resolution, firewall rules, and network connectivity between the session hosts and the license server to ensure there are no intermittent communication failures. It would be beneficial to confirm that the RDS Licensing Server activation status is healthy, the installed CALs are valid, and no licensing certificates have expired or become corrupted.

    You can also check whether the Remote Desktop Licensing and Remote Desktop Services services remain running during the failure window and compare their status before and after a server restart. If available, collecting an RSOP report and the output of gpresult /h can help verify that licensing policies are not being overwritten by another GPO. Finally, capturing the exact Event IDs and error messages logged when the issue occurs will help narrow down whether this is a licensing configuration issue, certificate problem, service failure, or network connectivity concern.

    I hope this information helps point you in the right direction. If you find this answer helpful, please click "Accept Answer"

    Jason

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