SOLUTION 1:
UAC filtering for local accounts must be disabled by creating the following DWORD registry entry and setting its value to 1.
1. On monitored system, go to registry editor.
2. Browse to: [HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Policies\System].
3. Create a 32-bit DWORD: LocalAccountTokenFilterPolicy | set value to 1.
4. Click OK, no need to restart the server.
SOLUTION 2:
If the error still occurs, ensure that the username field for the Windows connection properties is using the Hostname\Username format and not just the username alone since it's a local user account.