Recently Lately started having above error message when trying to RDP to cloud hosted Dynamics 365 Finance and managed to able to connect with multiple tries. Keep trying to connect and it will work 😉
MS shared below article to follow but you have to be very cautious in implementing this change https://docs.microsoft.com/en-us/azure/virtual-machines/troubleshooting/troubleshoot-rdp-internal-error#repair-the-vm-offline
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