Strange one I came across the other day, I was using a Hyper-V 2016 machine on console but kept getting the below error every time I tried to sign in – To sign in remotely, you need the right to sign in through Remote Desktop Services:
This was a domain joined machine and non-admin user account using console which should log on without needing to be added to Remote Desktop Users so I was very confused.
Turns out I had enabled Enhanced Session mode on the VM and this is treated like an RDP connection (hence the error). Switching to Basic using the top bar button fixed the issue!
Hope it helps!