This policy setting determines whether the SMB redirector will send plaintext passwords during authentication to third-party SMB servers that do not support password encryption. It is recommended that you disable this policy setting unless there is a strong business case to enable it. If this policy setting is enabled, unencrypted passwords will be allowed across the network. The recommended state for this setting is: Disabled. Rationale: If you enable this policy setting, the server can transmit passwords in plaintext across the network to other computers that offer SMB services, which is a significant security risk. These other computers may not use any of the SMB security mechanisms that are included with Windows Server 2003. Impact: None - this is the default behavior. Some very old applications and operating systems such as MS-DOS, Windows for Workgroups 3.11, and Windows 95a may not be able to communicate with the servers in your organization by means of the SMB protocol.
To establish the recommended configuration, set the following Device Configuration Policy to Disabled: 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) Enter a Name Click Add Enter the Details below Name: <Enter name> Description: <Enter Description> OMA-URI: ./Device/Vendor/MSFT/Policy/Config/LocalPoliciesSecurityOptions/MicrosoftNetworkClient_SendUnencryptedPasswordToThirdPartySMBServers Data type: Integer Value: 0 Select Save Continue through the Wizard to complete the creation of the profile (profile assignments, applicability etc.) Note: 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 #2 This recommendation can also be set using the Endpoint protection profile using Local device security options/Microsoft Network Client settings. Default Value: Disabled. (Plaintext passwords will not be sent during authentication to third-party SMB servers that do not support password encryption.)