First of all check if the screen saver is enabled on the server locally (log on to the server and check). Also check this setting in the Group Policy. Go to GPO linked to your Terminal Server > User Configuration > Policies > Administrative Templates > Control Panel > Display > you need a setting called “Screen Saver” Also Please make sure that Loopback Processing of Group Policy is enabled , so that User Configuration applied to your TS is enforced. source
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