Error 0x904 Extended 0x7 is a "False Positive" error—it looks like a permissions issue, but it is usually a protocol negotiation failure. While the error message itself is cryptic and unhelpful, the resolution is straightforward if you disable UDP.
★★★☆☆ (Moderate Difficulty to Resolve) Status: Connection Handshake Failure Error 0x904 Extended 0x7 is a "False Positive"
On the remote PC (admin CMD):
A common cause in server environments is an expired self-signed RDP certificate that fails to renew automatically. Error 0x904 Extended 0x7 is a "False Positive"