Input from keyboard or mouse not detected

Hello! 

When connecting from windows to android device "Ericsson_LT26i_CB511WTAWL" I can't use keyboard or mouse. Upon a connection request a connection is establashed but as a observer. None of the inout sources can be used. 
I have turned on Properties-->Advanced--->Enable Remote Input.

Any advices how I can solve this issue? 

The device is running Android version 4.1.2. And I'm trying to connect from Windows 8.1. 

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