Hello <removed>
It is highly likely that you are looking at the Subject section of the Event ID 4624 entry rather than the New Logon section, or you are observing the necessary machine-to-machine authentication that precedes user activity. In a Network Logon (Type 3) scenario, the "Subject" fields identify the account on the local system that requested the logon, which is almost invariably the local SYSTEM account (S-1-5-18) or the machine account itself, as the operating system's services (like the Server service or LSASS) are the entities processing the incoming network request. This is standard behavior and does not indicate a misconfiguration. You must scroll down within the event details to the New Logon section; this is where the Security ID and Account Name of the actual remote user connecting to the VM will be listed.
If you check the New Logon section and see a computer account (indicated by a $ at the end of the username, e.g., DESKTOP-XYZ$) instead of a human user, you are witnessing computer authentication. In Active Directory environments, computers authenticate to each other to establish secure channels for Group Policy updates, system management, or simply setting up the transport before the user session begins. These events generate a high volume of Logon Type 3 entries. The actual user authentication usually follows these machine events closely. If you truly do not see a subsequent Event 4624 Type 3 for the specific human user, the session might be utilizing an existing established network session (connection pooling), or the access might be occurring via a null session if ANONYMOUS LOGON is present.
To ensure you have the most granular and accurate logging control, verify that you are not relying on the legacy "Audit Logon Events" policy under Local Policies. Instead, configure this via the Advanced Audit Policy Configuration. Navigate to Computer Configuration > Policies > Windows Settings > Security Settings > Advanced Audit Policy Configuration > System Audit Policies > Logon/Logoff and ensure Audit Logon is set to Success and Failure. Additionally, verify that the security option "Audit: Force audit policy subcategory settings..." in the Local Policies > Security Options is enabled to prevent legacy category policies from overriding your granular advanced settings. This ensures the VM captures every distinct logon attempt, allowing you to filter out the SYSTEM noise and locate the specific user identity in the New Logon field.
I hope you've found something useful here. If it helps you get more insight into the issue, it's appreciated to accept the answer. Should you have more questions, feel free to leave a message. Have a nice day!
VP