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RemoteApp GPO is not applying for users without local admin access

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My organization is planning on deploying AX 2012 R3 Client via RemoteApp for all our users. I am currently testing this out with RDS installed on a single Windows 2012 R2 Server, but in the future I will set up a new Server 2016 RDS environment for this.

I am having issues publishing the RemoteApp URL via GPO to my users. It will only work if the user has local administrator access on their PC. This cant be how it's supposed to work? I am planning on deploying this to hundreds of users! If the user manually adds it into the Control Panel Item it works. They are asked to log on once, and they just use their own credentials and it works fine.

The event log tells me this. "Windows failed to apply the {4D2F9B6F-1E52-4711-A382-6A8B1A003DE6} settings. {4D2F9B6F-1E52-4711-A382-6A8B1A003DE6} settings might have its own log file. Please click on the "More information" link."

Notes:
- I have figured out that the GUID the RemoteApp settings.
- The GPO shows up as an applied GPO in gpresult /h.
- I am sure I have seen the error "access denied" somewhere but I cant remember where now.

Reference to this thread where another admin had similar issue: https://social.technet.microsoft.com/Forums/windowsserver/en-US/21362dc1-24be-48ff-8447-2ca80d068d8c/rds-remoteapp-url-gpo?forum=winserverGP#21362dc1-24be-48ff-8447-2ca80d068d8c

Anyone have a clue of what may cause this? Why does this only work for users with local administrator access? Is there maybe some other GPO that blocks it?

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