I was able to get this fixed. Apparently there was a windows update that broke NLA  in Wyse ThinOS that was fixed in version 8.6_027. All of my thin clients were running 8.4. At the time of deployment we had some legacy thin clients in our system that required using a direct RDP connection and the DefaultTSVUrl for load balancing. They were using 8.3 firmware. We replaced all of those with 3040's, but we did not update our firmware. So long story short, I removed the DefaultTSVUrl, upgraded firmware on both our 3020's and 3040's and adjusted my CAP and RAP policies and got it working in my test environment. 
I am in the process of migrating users off upd’s to fslogix profile containers in our RDS environment. It’s a standard RDS setup with one connection broker, 25 sessions hosts, rdweb and rdgateway servers. Users connect via wyse thin clients that pull the connection information from the wyse portal. All Servers are Server 2016.I would like to publish another collection alongside the existing collection on the same broker, but this will not work due to having the DefaultTSVUrl pointing to the existing collection. Is there a way to host two session host desktop collections on the same broker?  I have googled this for days and am getting nowhere. I removed the DefaultTSVUrl, but the user logged directly into the rdbroker. Now, this is because it is configured as a direct rdp connection, and with that registry setting the broker doesn't know where to send the connection. I then configured  a new connection using Microsoft Broker and a new test collection, but the thin clients are not presented a login window. 
Two RDS Desktop collections on one rdbroker