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