Accounts: Limit local account use of blank passwords
As the name implies, this policy only has effect on local SAM accounts; it does prevent domain accounts with blank passwords from logging on.
This is a useful fail-safe against local SAM accounts with blank passwords. When enabled, you cannot logon via Remote Desktop or with a network connection (such as to a shared folder) with a local account that has a blank password. Bottom line
Enable this but remember that best practice is to avoid the use of local accounts to begin with.
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