Modern Standby does not work well on some systems. On my ASUS FX707VI running Windows 11 Professional, Microsoft's Remote Desktop Connection fails after the interval provided for the screen to turn off in power management settings. It does not fail fully, but input is inhibited by the power management service, so keyboard/mouse input stops responding while the display continues to update. I have tracked this down through Event Viewer logs and found that the system is entering modern standby even when I have the system set up to never sleep when plugged in.
I tested several scenarios with different power options for when the screen is set to turn off. As soon as the Remote Desktop session reaches that time limit, the system inhibits input.
Power Manager has requested suppression of all input (INPUT_SUPPRESS_REQUEST=1)
Interestingly, if I set the time to a time in the past, e.g. change it from 30 minutes to 1 minute and 1 minute has elapsed in my session, Power Manager immediately suppresses input.
For the time being, I am setting both settings for the screen turning off and system sleeping to Never when I want to start a Remote Desktop Connection session. I do not want to disable Modern Standby on the system; that feels like an extreme workaround that should not be necessary. I would like Microsoft to find a better solution instead of both workarounds. Modern Standby should not activate during remote desktop sessions.