"Failed to create WMI connection" when adding performance counter to a database agent (4249213)

When attempting to add performance counter in the SQL server agent administration page, the following error is encountered:

"Failure to create a WMI connection using any of the 1 credentials returned from the FglAM credential query.".

Error in SQL Server Agent log:

com.quest.qsi.fason.framework.connections.wmi.WMIConnectionFactory - Failed to connect to xxx with credential xxx\xxx.
com.quest.qsi.fason.framework.connections.common.exceptions.FrameworkConnectionException: Connection Failed- Profile:WMIProfile{domain="xxx", username="xxx", host="xxx"} Query: "select Processes from Win32_PerfRawData_PerfOS_System"- Profile:WMIProfile{domain="xxx", username="xxx", host="xxx"}
Caused by: com.quest.qsi.fason.framework.connections.common.exceptions.FrameworkConnectionException: A connection to the remote host could not be established.  Windows returned error code 0x
 at com.quest.qsi.fason.framework.connections.wmi.jacob.WMIJacobConnectionImpl.makeConnect(WMIJacobConnectionImpl.java:83)
 at com.quest.qsi.fason.framework.connections.wmi.jacob.WMIJacobConnectionImpl.execute(WMIJacobConnectionImpl.java:171)
Caused by: com.jacob.com.ComFailException: Invoke of: ConnectServer
Source: SWbemLocator
Description: User credentials cannot be used for local connections

 at com.jacob.com.Dispatch.invokev(Native Method)
 at com.jacob.com.Dispatch.invokev(Dispatch.java:625)
 at com.jacob.com.Dispatch.callN(Dispatch.java:453)
 at com.quest.qsi.fason.framework.connections.wmi.WMIUtils.callDispatchMethod(WMIUtils.java:114)
 at com.quest.qsi.fason.framework.connections.wmi.jacob.WMIJacobConnectionImpl.makeConnect(WMIJacobConnectionImpl.java:76)

CAUSE #1
As per Microsoft Technet, WMI scripts that connect to the WMI service on the local computer always connect using the security context of the logged on user. This error can occur when using domain credentials to connect to a local resource using WMI.

http://technet.microsoft.com/en-ca/library/ee198921.aspx

CAUSE #2
The issue can be to be related to WMI permissions when authenticating to the local server. Doing a manual connection test, the authentication to the local server with the administrator credentials would fail with the message "User credentials cannot be used for local connections".

When tested without username and password and using the Windows Default Account (which is the FglAM service login), the connection test works. This situation can be handled by setting only the username and password if the local machine name doesn't match the DNS hostname record for the server environment machine name.

Resolution #1:

1. Go to Administration | Agent Status to deactivate the existing DBSS Agent.
2. Deactivate the Windows Agent as well if OS monitoring is enabled.
3. Remove the credentials created for the existing DBSS and Windows Agent.
4. Go to Administration | Credentials | Manage Credentials and add a new "Use Client's Login At Connection Time" credential. 
5. Go to Administration | Agent Status to activate the DBSS and Windows Agent.
6. Go to the SQL server Global Administration page and add a new performance counter.

Resolution #2

Update DNS hostname to match the NETBIOS name, or edit the hosts file on the Agent Manager server.