I am able to connect remotely without using any security, despite the fact that the Host's settings are enabled to use both "Remote Utilities security" under Authorization AND two-factor authentication (as you can see in the attached screenshots). When I connect from the viewer, NO security is requested and I connect directly. Any suggestions? This seems like a pretty big problem.
Could you please clarify if you're already logged on to this remote Host prior connecting, i.e. is the connection displayed in the Logged on section of the address book like on the following screenshot?
If this is the case, then this is expected behavior - you simply connect to the remote Host right away because your Viewer is already authenticated (perhaps, you've already connected to this Host before or if you have the Automatic logon feature enabled).
In case if you want to avoid staying logged in to the remote Host, please consider using the Log off connection on disconnect feature - this way, your Viewer is logged off each time when you close Full Control and View window or when the session is terminated otherwise. In order to enable the feature please open the Connection Properties window, navigate to the Additional Properties tab and enable the Log off connection on disconnect checkbox.