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RDS CALs being assigned from "Installed RDS Per User CAL (Overused)" instead of valid license packs

Sony Varghese 0 Reputation points
2025-08-18T12:07:13.54+00:00

Hello,

We are facing an issue with our RDS licensing setup. In RD Licensing Manager, we notice that licenses are being assigned from the first option "Installed RDS Per User CAL (Built-in Overused)" instead of our valid purchased license packs.

Here are the observations:

The first license pack shows as "Installed RDS Per User CAL – Built-in OverUsed" with many licenses issued (screenshot attached).

We also have multiple valid Windows Server 2019 – Installed RDS Per User CAL packs (Open License) installed, but the issued count for these remains at 0 or very low.

Despite the valid CALs being available, the system continues to assign licenses from the built-in "overused" pack.

Screenshots attached for reference:

  1. RD Licensing Manager view (showing built-in overused CALs being issued).
  2. RD License Server Configuration window.
    RD License Server Configuration window.png
    RD Licensing Manager view.png

Additional steps already tried:

  • Verified that the license server is correctly activated in RD Licensing Manager.
  • Checked that the license server is a member of the Terminal Server License Servers group in Active Directory.
  • Verified discovery scope = Domain.
  • Installed multiple valid Windows Server 2019 Per User CAL packs (visible in RD Licensing Manager).
  • Restarted the Remote Desktop Licensing service.
  • Ensured RDSH servers are configured to use this license server.

Despite these checks, the CALs continue to be assigned from the Built-in Overused pool instead of the valid purchased packs.

Question:

  • Is this behavior normal, or is it an abnormality in our RDS licensing setup?
  • How can we ensure that licenses are issued from the valid purchased CAL packs instead of the "Installed RDS Per User CAL (Overused)" option?
  • Do we need to reconfigure the RDS servers to point to the correct CAL packs, and if so, what is the recommended method?

Any guidance would be highly appreciated.

Thank you.

Windows for business | Windows Server | Devices and deployment | Other
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  1. Harry Phan 1,225 Reputation points Independent Advisor
    2025-08-19T08:09:50.4866667+00:00

    Dear Sony Varghese,

    Based on your description and attached screenshots, the RD Licensing Manager is issuing licenses from the built-in “Overused” pool, despite multiple valid Windows Server 2019 Per User CALs (Open License) being installed and visible. You've already taken commendable steps to validate the license server activation, group membership, discovery scope, and RDSH server configuration.

    This behavior is not typical and may indicate a misalignment between the RDSH servers and the license server, or a delay in license reconciliation. The “Built-in Overused” pool is a fallback mechanism used when the license server cannot properly allocate CALs from valid packs. This can occur due to:

    Incorrect Group Policy configuration on RDSH servers

    Missing or delayed synchronization between RDSH and the license server

    CAL version mismatch or installation anomalies

    To ensure licenses are issued from the correct CAL packs, please review and apply the following steps:

    1. Verify Group Policy Configuration a) On each RDSH server, ensure the following policies are set:
      • Code 
             Computer Configuration > Administrative Templates > Windows Components > Remote Desktop Services > Remote Desktop Session Host > Licensing
      • Use the specified Remote Desktop license servers → Enabled, with correct license server name
      • Set the Remote Desktop licensing mode → Enabled, set to “Per User”
    2. Force Group Policy Update Run gpupdate /force on each RDSH server and reboot to apply changes.
    3. Validate License Server Role Confirm the license server is listed in the Terminal Server License Servers group in Active Directory. Use RD Licensing Diagnoser (lsdiag.msc) to check for any warnings or errors.
    4. Check CAL Compatibility Ensure the installed CALs match the version of Windows Server running on the RDSH servers. For example, 2019 CALs are compatible with 2019 and earlier RDSH versions.
    5. Monitor License Assignment After applying the above, monitor RD Licensing Manager to confirm that issued licenses begin reflecting under the valid CAL packs.

    If the above response helps answer your question, remember to "Accept Answer" so that others in the community facing similar issues can easily find the solution. Your contribution is highly appreciated.

    Best regards,

    Harry Phan

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