Unless the virtual desktop is monitored routinely for aberrent behavior, it quickly becomes a virtual server if the student finds a way to escallate user privs.
Even without increased user privs, things like torrent clients and file shares can be turned on with limited user credentials. This means that virtual servers of a more contained but still liability inducing nature can be operated on university property.
Take for instance, the default behavior of windows and NTFS file security. If you are the owner, you have sufficient rights to the filesystem objects to be able to share it. If you share it with the "everyone" user, then connecting users no longer need to provide credentials to access the share. Access over SMB protocol would be expectedly normal behavior from the host, so unless a lot of activity causes the admin team to get suspicious, nobody would think to check.
Running a user mode http server, or the like, and using an alternative port and pretending to be some other kind of traffic, may likewise enable the now "virtual serverized" virtual desktop to be used for all kinds of things, such as torrenting. (EG, the student sets up the usermode torrent client, instructs it to save files into the folder he has created and shared with "everyone", then simply pulls the completed files off the university network later over SMB, and nobody is the wiser. Especially if he throttles the download and upload speeds, and uses encryption on a well known port to make it look like legit traffic to automated alerting tools.)
Passing illegal copies of Ms Office, or games, or whatever with other students in this way suddenly becomes very real as a prospect, and something that simply giving virtual terminal access to students at large would enable.
The student agreement for proper use of university resources only indemnifies the university to a certain point.
Many students dont give a rat's ass about complying with said agreement.
The best solution, from a network admin POV, is to deny access, and only provide when a genuine need is presented, and the on an as-needed, per user manner.