I believe you need to be connected to the remote machine via LogMeIn. In Device Manager under Display Adapters there is a LogMeIn Virtual Display Adapter. Disabling the device did not fix the issue for me.
BUT, removing the Virtual Display function does come at a cost, as AshC had warned about.... now the Blank Screen option no longer works. Is there a way to reenable the LMI Virtual Display Adapter? I couldnt find it at first, but if you go to View and select Show Hidden Devices, it will appear. But I am unable to enable the device because it says the Hardware device is not connected to the computer (Code 45). Does anyone know how to reconnect this?
Still having the same problem with a lot of frustrated customers. You can't Enable or Disable the Virtual Display Adapter, and Uninstall Device does nothing to fix the problem. (Code 45 error message)
Hard to imagine we're just supposed to wait around for a patch.