XenApp session throwing error "To log on to this remote computer, you must be granted"

When XenApp hosted shared desktop is launch or XenApp published applications are launch it throw following error " To log on to this remote computer , you must be granted the allow log on through Terminal Services right"

Users were member of local desktop groups but for some reason local policies for "Allow log on through Remote Desktop Services" were not configured for "Remote Desktop users" Once added , HSD were successfully launched.