KB40570 - Windows Terminal Service (WTS) fails to connect after endpoint is upgrade to Windows 10 Creators Update

This article describes an issue where Windows Terminal Services (WTS) client fails to connect through the Pulse Connect Secure (PCS) device after the endpoint has upgraded to Windows 10 Creators Update.

From a Windows 10 endpoint running Creators Update (Version 1703), Windows Terminal Service (WTS) client will fail to connect through the Pulse Connect Secure (PCS) device.  The following error message will appear:
 

An authentication error has occurred (Code: 0x80070057)

Remote computer: <remote host>

 

Affected Versions:

• 8.1R7 to 8.1R10
• 8.2R1 to 8.2R5

This issue is resolved in 8.3R1, 8.2R8 and 8.1R12 (and higher release versions). 

The latest software version can be download on Pulse Secure Licensing and Download Center.

Workaround (applicable for 8.1R10 only):

If an upgrade to 8.1R11 is not possible and the target does not require Network Level Authentication (NLA), the administrator can using the Disable NLA option:

1. Login to Pulse Connect Secure admin console
2. Navigate to Users > Resource Profiles > Terminal Services
3. From the list, find the corresponding Terminal Services link, then click the link under Bookmarks
4. Under Connect Devices, select the checkbox for Disable NLA