Information
This policy setting determines whether users can log on as Remote Desktop clients. After the baseline workstation is joined to a domain environment, there is no need to use local accounts to access the workstation from the network. Domain accounts can access the workstation for administration and end-user processing. This user right supersedes the Allow log on through Remote Desktop Services user right if an account is subject to both policies.
The recommended state for this setting is to include: Guests, Local account.
Caution: Configuring a standalone (non-domain-joined) workstation as described above may result in an inability to remotely administer the workstation.
Note: The security identifier Local account is not available in Windows 7 and Windows 8.0 unless MSKB 2871997 has been installed.
Note #2: In all versions of Windows prior to Windows 7, Remote Desktop Services was known as Terminal Services, so you should substitute the older term if comparing against an older OS.
Rationale:
Any account with the right to log on through Remote Desktop Services could be used to log on to the remote console of the computer. If this user right is not restricted to legitimate users who need to log on to the console of the computer, unauthorized users might download and run malicious software that elevates their privileges.
Impact:
If you assign the Deny log on through Remote Desktop Services user right to other groups, you could limit the abilities of users who are assigned to specific administrative roles in your environment. Accounts that have this user right will be unable to connect to the computer through either Remote Desktop Services or Remote Assistance. You should confirm that delegated tasks will not be negatively impacted.
Solution
To establish the recommended configuration, set the following Device Configuration Policy to Guests, Local account:
To access the Device Configuration Policy from the Intune Home page:
Click Devices
Click Configuration profiles
Click Create profile
Select the platform (Windows 10 and later)
Select the profile (Endpoint protection)
Click Create
Enter a Name
Click Next
Configure the following Setting
Path: Endpoint protection/User Rights
Setting Name: Deny log on through Remote Desktop Services
Configuration: Allow and sub-option: Guests, Local account
Select OK
Continue through the Wizard to complete the creation of the profile (profile assignments, applicability etc.)
Note: More than one configuration setting from each of the Configuration profiles (ex: Administrative Templates, Custom etc.) can be added to each Device Configuration Policy.
Note #2: This setting can also be created via a Custom Configuration Profile using the following OMA-URI:
Name: <Enter name>
Description: <Enter Description>
OMA-URI: ./Device/Vendor/MSFT/Policy/Config/UserRights/DenyRemoteDesktopServicesLogOn
Data type: String
Value: Guests, Local account
Important: When there is more than one value that needs to be entered (ex: Guests, Administrator), the XML value of  will need to be converted to its Unicode character representation to separate the values in the Value field of the Custom Device Configuration Policy. This value should convert to a square with a question mark in it (). Please note that when copied from the converter to Intune a square will appear, but the value will still work. Also note that this value cannot be copied from sources like Microsoft Word. We recommend that the value be copied and used directly from the converter. A sample converter can be found at Online XML entity decoder | Coder's Toolbox.
Select OK
Continue through the Wizard to complete the creation of the profile (profile assignments, applicability etc.)
Note #3: The following link is an alternative way to set the 'User Rights Assignment' section. Policy CSP - UserRights - Windows Client Management | Microsoft Docs
Default Value:
No one.