This policy setting determines which users can interactively log on to computers in your environment. Logons that are initiated by pressing the CTRL+ALT+DEL key sequence on the client computer keyboard require this user right. Users who attempt to log on through Terminal Services / Remote Desktop Services or IIS also require this user right. The recommended state for this setting is: Administrators, Users. Note: The Guest account is also assigned this user right by default. Although this account is disabled by default, it's recommended that you configure this setting through Group Policy. However, this user right should generally be restricted to the Administrators and Users groups. Assign this user right to the Backup Operators group if your organization requires that they have this capability. Rationale: Any account with the Allow log on locally user right can log on at the console of the computer. If you do not restrict this user right to legitimate users who need to be able to log on to the console of the computer, unauthorized users could download and run malicious software to elevate their privileges. Impact: If you remove these default groups, you could limit the abilities of users who are assigned to specific administrative roles in your environment. You should confirm that delegated activities will not be adversely affected by any changes that you make to the Allow log on locally user right.
To establish the recommended configuration, set the following Device Configuration Policy to Administrators, Users: To access the Device Configuration Policy from the Intune Home page: Click Devices Click Configuration profiles Click Create profile Select the platform (Windows 10 and later) Select the profile (Custom) Click Create Enter a Name Click Next Configure the following Setting Name: <Enter name> Description: <Enter Description> OMA-URI: ./Device/Vendor/MSFT/Policy/Config/UserRights/AllowLocalLogOn Data type: String Value: Administrators, Users Note: When there is more than one value that needs to be entered (ex: Guests, Administrator), the XML value of will need to be converted to US-ASCII to separate the values in the Value field of the Custom Device Configuration Policy. This value should convert to a square with a question mark in it (). Please note that when copied from the converter to Intune a square will appear, but the value will still work. Also note that this value cannot be copied from sources like Microsoft Word. We recommend that the value be copied and used directly from the converter. Select OK Continue through the Wizard to complete the creation of the profile (profile assignments, applicability etc.) Note #2: More than one configuration setting from each of the Configuration profiles (ex: Administrative Templates, Custom etc.) can be added to each Device Configuration Policy. Note #3: The following link is an alternative way to set the 'User Rights Assignment' section. Policy CSP - UserRights - Windows Client Management | Microsoft Docs Default Value: Administrators, Backup Operators, Guest, Users.