Use the 4:4:4 AVC mode in 2016 and Windows 10

Q. How do I enable use of the 4:4:4 AVC mode?

A. Windows Server 2016 introduces a new 4:4:4 AVC mode for Remote Desktop that is enabled by default for RemoteFX vGPU sessions but not for other RDP sessions by default. To enable the use of the 4:4:4 AVC mode which delivers much better fidelity text while still leveraging the hardware offloading available for 4:2:0 mode as discussed at https://blogs.technet.microsoft.com/enterprisemobility/2016/01/11/remote-desktop-protocol-rdp-10-avch-264-improvements-in-windows-10-and-windows-server-2016-technical-preview/. To enable this codec perform the following:

1. Open and edit a group policy that targets the RDS and Hyper-V hosts (the first setting applies to RDSH the second applies to the Hyper-V hosts)
2. Navigate to Computer Configuration - Administrative Templates - Windows Components - Remote Desktop Services - Remote Desktop Session Host - Remote Session Environment
3. Double click the Prioritize H.264/AVC 444 Graphics mode for Remote Desktop connections policy and set to Enabled then click OK
   
4. Also set Configure H.264/AVC hardware encoding for Remote Desktop connections to Enabled then select if it should always be used or only if using RemoteFX GPU. Click OK