RDP Disconnected! Error Code: 2308 Error Description: Socket closed

After a windows update, a couple of Windows 2016 Servers on AWS started rejecting the RDP connections.
mRemote was giving the error "RDP Disconnected! Error Code: 2308 Error Description: Socket closed". MS RDP is giving "This computer can't connect to the remote computer. Try connecting again. If the problem continues, contact the owner of the remote computer or your network administrator."

After a bit of tinkering, I found that the problem seems to be the RDP TLS and encryption level.

To solve it:

- remote connect Registry Editor to the affected server and change the DWORD 
HKLM\CurrentControlSet\Control\Terminal Server\WinStations\RDP-Tcp\SecurityLayer from "2" to "0" 


- remote connect Services.msc to the affected server and restart TermService