I had a very similar problem. Frequently, a few seconds after opening a teamviewer session, the session froze and I could do nothing but disconnect. All subsequent connection attempts failed with the problem you described (hangs at initializing display parameters) until I killed and restarted the TeamViewer process locally. In my case, the cause turned out to be conflicting accesses of Teamviewer and another process (BGInfo from SysInternals) to the desktop upon login. I had BGInfo update a dynamic wallpaper each time I logged in. That apparently caused Teamviewer to hang while attempting to modify the screen settings as well (to match that of the remote PC). My initial fix was to disable the BGInfo process. That fixed the problem. However, I wanted to keep using BGInfo. So I created a scheduled task, that runs BGInfo and triggers "On workstation unlock" but has "Delay task for:" set to "1 minute". This way, BGInfo is started long after TeamViewer has everything set up and running.
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Enabled the "Disable remote input and show black screen" option for PC1 From PC2, opened a TeamViewer session to PC1 Screen on PC1 turned black and PC accepted no local input, mouse, etc. All seemed well. Pressed Ctrl-Alt-Del locally on PC1 Black screen disappeared and the options menu (Lock, Switch User, Signout, ...) appeared. Clicked Cancel or pressed ESC on PC1 Was returned to full local desktop access on PC1! So even with the "Disable remote input and show black screen" option set, it is trivially possible for an attacker to gain local access to the desktop of the remote PC1. And if the attacker is quick enough, he could swiftly shut down the Teamviewer session and thus disconnect the legitimate user on PC2. Hardware & OS ATI Radeon HD 2600 XT AMD Driver Version 8.970.100.9001 Intel Core i7-2600K Windows 10 Enterprise 2016 LTSB, Version 1607
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