RESOLUTION #1:
Remove the creator's username in that window and type in your own username and password. If there are multiple steps in the app needing a connection, this would need to be done for each step.
RESOLUTION #2:
Right click on the app in the Automation Designer and select Run With Connections, which lets the user choose a connection in their Connection window that is used for all steps. Note: This does not save that connection that is selected. The user will have to perform this each time the run it.
STATUS:
Waiting for an enhancement to be implemented, in a future version of Toad for Oracle, that would allow the new connection to be saved going forward.