Follow the steps below on fixing this issue.

 Open the Server Manager and click on RD Licensing Diagnoser

Entering RD Licensing Diagnoser Page

When the RD Licensing Diagnoser opens you will see the below image and see
that licenses are not available.
 RD Licensing Diagnoser Page

 Now click on RD Licensing Manager to install the license you have
purchased.
 Entering RD Licensing Manager

 Right-click the server and select Install Licenses

 Installing the License

 You need to know the type of license you purchased whether its

Select your License program

 In this guide we will be using License Pack (Retail Purchase) as our

License program.
 License Program

 Add the License key and click next

 Adding License Key

 After the License is successfully installed click on Finish.

 License installed successfully

 Now let’s review the configuration by opening the RD Licensing

Manager and select Review Configuration.
 Reviewing Configuration

 It’s possible you will have some issues like the issue of The license server
is not a member of the Terminal Server License…….
 Terminal Server License Group Error

 Click Add to Group and Continue
 Adding to Group

 Enter the Domain user name and password and click Ok

 Entering Domain Login Details

 If the domain username and password is correct then the license server
will be added to the Terminal Server License Servers Group in Active
Directory.
 License server added successfully

 If you refresh the RD License Manager all configuration will be fine.

 RD License Manager

 But if you check the RD Licensing Diagnoser you might still see some
errors like the below image.
 RD License Diagnoser

 To fix the above error, In the search button of your task bar enter edit
group policy
 Edit Group Policy Screen

 Click on Use the specified Remote Desktop license servers

 Select Enabled and enter the License server you want to use which is
the name of the physical server and click Ok.
 Using the specified Remote Desktop license server

 Click on Set the Remote Desktop licensing mode

 Select Enabled and Specify the licensing mode for the RD Session Host
server either Per device or Per User and click Ok.
 Setting the Remote Desktop Licensing mode

 If you check the RD Licensing Diagnoser again the number of licenses

available for clients should display and no error or warnings would
display.
 You can now go ahead and remote desktop to the server and the
connection will be successful because the license configuration has been
implemented successfully.