Can't connect to SQL server instance - Target principal name is incorrect. (4268540)

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Title

Can't connect to SQL server instance - Target principal name is incorrect.
Description

It is possible to add an instance to the LiteSpeed, but it is not possible to connect to this instance.
Cause

Try to connect to the database with the same credentials via Management Studio. The following error will be produced:
Resolution

This is 3rd party issue. Please see the following link for troubleshooting steps.
https://support.microsoft.com/en-us/help/811889/how-to-troubleshoot-the-cannot-generate-sspi-context-error-message