MacOS Monterey 12.4 is breaking Microsoft Remote Desktop - Error Code 0x204

Microsoft Remote Desktop was running smoothly on MacOS 12.3.1 I could work and connect to a Windows Server without any problems .. after the update to 12.4 I only get "unable to connect" with Error Code 0x204. Anyone have solutions? I can not downgrade my mac (I tried), as its not permitted on an M1 that has been shipped with Monterey.

I have tried to turn off some settings as it was tips & tricks mentioned for these problems earlier. Such as Proxy config, hardware acceleration open in full screen.. all tried on/off. Search for Group Containers and delete the .rdp files (not found, doesn't exist).

I am running out of options.

Solutions anyone?