We are having the same issue in our environment aside from the smart card being seen as JavaCard #2. We are thinking it has something to do with certificates since the majority of the users having issues were just recently issued a new smartcard token. We have not found a solution as of yet.
I was given this work around from Solarwinds and it is working for us maybe it will work for you as well ''If you remove the Smart Card before clicking Connect in the Remote Connect Window, then re-inserting the Smart Card when the Smart Card Remote Logon window appears"
Thank you so much for posting this information.
Honestly, as ridiculous as the information sounds, it is spot on and actually works.
I can't believe that Solarwinds has not published this anywhere.
I've been searching forums of all kinds for TWO days trying to figure this out and was about to try to get a new card made.
Solarwinds, get off your butts and find a real fix!