Cannot add physical machine to inventory when using local administrator account (4032701)

• The physical machine has a Windows 2008R2, 2012R2 or 2016 OS.
• The physical machine has joined a domain. 
• The machine gets installed and added successfully when using a domain administrator account. 
• The local user account password has been correctly set and tested. 
• The firewall has been correctly configured. 
• When adding a physical machine to inventory, it fails with the following message when using a local administrator account:

Login Failed for user . Please verify the username and password

This is caused by the UAC remote restriction, which prevents local users to gain elevated privileges. When the remote UAC is enabled and the server has joined the domain, it allows local users who belong to the local administrator group to connect, but the users won't connect as full administrators. Due to this, these users cannot gain elevated privileges to perform administrative tasks. 

For more information, refer to the Microsoft Article ID 951016. 

• Navigate to HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Policies\System
• Create a DWORD value called LocalAccountTokenFilterPolicy and assign it a value of 1.