We have WPAD disabled on all of our systems due to the known security risks. It has been this way for a few years and I have not had any issues. Recently we deployed several Windows Server 2016 servers with Terminal Services. They are replacing our Windows Server 2012 servers with Terminal Services.
The issue I am having is that after the nightly reboot, the network connection on these 2016 servers has a yellow warning icon and if you hover over it, it says "No Internet Access". The internet is working perfectly fine, and as far as I can gather this error is being displayed because the function that detects the internet is dependent on the WPAD service. Hopefully I'm wrong, so someone please correct me.
Normally I wouldn't care about this "No Internet Access" icon which is mostly harmless and inaccurate, but Outlook will NOT connect to the local exchange server while it thinks there is "No Internet Access". So I get calls in the early morning that Outlook/Exchange is down when really it is not down at all. The odd thing is that if I simply click on the network icon in the system tray, the error immediately clears and all users suddenly have access to Exchange again until the next reboot. Any user can click on the network icon in the system tray, it does not have to be an administrator.
How can I fix this?