Q: Can I use RemoteFX with a Generation 2 virtual machine (VM)?
A: The new Generation 2 VM introduced with Windows Server 2012 R2 is currently not compatible with RemoteFX, which is the technology that allows a GPU to be virtualized and assigned to VMs, giving a VM GPU capabilities such as local GPU. I suspect this is because the new Generation 2 VMs don't have many previously emulated devices such as PCI bus, which RemoteFX partly leveraged. If you need RemoteFX in your client VMs, ensure you use Generation 1 VMs.
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