We have a Windows PC joined to Entra ID and need to connect to it over Remote Desktop using a local account. The account exists and is a member of the Remote Desktop Users group, but the connection keeps trying to authenticate through the Entra domain instead of using the local credentials. Using either .username or hostnameusername connects to the remote computer, but login fails with an invalid-credentials message and displays the Entra sign-in context. We are using a custom RDP file with settings such as authentication level:i:2, enablecredsspsupport:i:0, and prompt for credentials:i:0. What configuration is needed to force authentication with the local account?
4 Answers
The fact that the remote desktop screen appears means the network connection and RDP listener are working; the failure is happening during identity selection. The client can sometimes override the username supplied in the file and default to the Entra identity, so disabling web credentials and explicitly choosing the local account on the remote sign-in screen is a practical workaround.
Use the remote computer's name followed by the local username, such as HOSTNAMEusername. Also open the Remote Desktop client’s advanced settings and disable the option to use web credentials. Otherwise the client may continue presenting the Entra sign-in flow even when a local account is specified. Confirm that the account is still a member of Remote Desktop Users.
Editing the RDP file in a text editor can help. The settings authentication level:i:2 and enablecredsspsupport:i:0 are commonly used when troubleshooting credential negotiation. You may still need to select the local account manually at the Windows sign-in screen if the client has already cached or selected the Entra identity.
Check the local security policy on the target PC. Make sure local accounts are not included in either “Deny access to this computer from the network” or “Deny log on through Remote Desktop Services.” Those policies can block local RDP authentication even when the account is in the correct group.

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