Why my RDP connection logs-out another user?
Windows 10 is not a server OS, but a client OS. The difference between a server and client OS is the focus on foreground vs background tasks.
On a server OS, all programs are presumed to run as background tasks and ensures that all programs get equal attention. Additional server roles bring functionality to the server to allow it to perform certain tasks. One of these features is called Terminal Services, a service that allows more than 2 users to connect to the server remotely at the same time.
On a client OS, everything runs in the user scope at the foreground. As such, the user has exclusive access to the hardware which helps greatly with performance, but also makes that only one user can use this at the same time. As a result, when a user "locks" access to hardware, another user simply can't access it. As a result, the user has to be pushed to the lock screen to release the lock, allowing a remote user to use terminal services (user SYSTEM) to forward the things such as graphics to the user. So the remote user does not get a lock on the hardware, the SYSTEM user takes the lock in this case, and redirects this.
How this can be resolved so I can use the machine remotely and allow other users with other usernames to still work locally on the machine simultaneously?
The short answer is, you cannot.
Is it technically impossible? No. It can be done on Windows Server, right... But Microsoft does not want you to do it when using a client OS, and therefor it cannot be done. Due to how a client OS works, there is too much that needs to change for this to become a possible option, that it is a far easier approach to use a Server OS to begin with. Also, the prices for a server license are far higher. Microsoft wants to charge for how many users a device is used at the same time, thus a client OS has lower prices, but the limit of one user at the time (by default). A hack can make more than one users through RDP, but microsoft actively combats this, and as such, everytime they update the terminal services, the hack needs to be applied again, making it tedious and not a viable solution to begin with. A server is designed to work on with multiple users, and you pay per user licenses.
That said, if the pc in question is a very powerful one, you could in theory install a VM and allow access to the VM through RDP. You could then have a user work locally and a user through RDP because in essence, you run 2 windows installations on one pc. The performance will suffer, but it is possible.