Here is how to resolve this problem:

  1. Click on Start, and then in the search bar type: gpedit.msc
  2. Expand Computer Configuration, Expand Administrative Templates, Expand System, Expand Credentials Delegation
  3. Double Click on “Allow Delegating Default Credentials with NTLM-only Server Authentication“. Click the “Show…” button, Enter the following: TERMSRV/*
  4. Click OK, to close the Show Contents Window, Click OK again to close the next window.
  5. Double Click on “Allow Delegating Saved Credentials with NTLM-only Server Authentication“. Click the “Show…” button, Enter the following: TERMSRV/*
  6. Click OK, to close the Show Contents Window, Click OK again to close the next window.
  7. Click on Start, and then in the search bar type: GPUPDATE /FORCE

Windows 7 Not Remembering Remote Desktop Credentials