How to fix this issue

The error indicates an invalid credential problem. Use the following steps to troubleshoot and fix it:

1. Verify the username format
   • If signing into a Microsoft Entra joined or hybrid-joined Windows device or service, use ******@domain.com format.
   • If signing into a domain-only joined machine, use DOMAIN\user format.
   • To confirm the device join state on the target Windows machine, run in an elevated Command Prompt:
     • dsregcmd /status
     • In the Device State section:
       • AzureAdJoined : YES → use ******@domain.com.
       • AzureAdJoined : NO and DomainJoined : YES → use DOMAIN\user.
2. Confirm the password and account status
   • Make sure the password is correct and not expired.
   • Ensure the account isn’t locked out or disabled.
   • If possible, change the password and try again.
3. Check for account restriction policies
   • Some accounts have restrictions such as:
     • Time-of-day login restrictions.
     • Restrictions on which workstations the account can log on from.
   • Ask the directory or security administrator to verify that no such policies are blocking sign-in for this account from this device.
4. Test the same credentials directly on the target machine
   • Sign in locally or via Remote Desktop to the same machine or service using exactly the same username and password that trigger this error.
   • If sign-in fails there as well, use the on-screen error to further pinpoint whether it’s:
     • Wrong username format.
     • Password issue.
     • Account restriction (logon hours, workstation restriction, etc.).
5. If using Power Automate desktop flows or similar automation
   • Recreate or edit the connection and re-enter the credentials with the correct format.
   • Ensure the account used for the connection can sign in interactively to the target machine without errors.

If, after these checks, the credentials still fail but work elsewhere, contact the tenant or system administrator with the correlation ID, timestamp, and error code so they can review sign-in logs and policy configuration.

References:

• Invalid credentials error when running desktop flows in Power Automate for desktop
• "Unable to authenticate your credentials" error when you try to connect to Microsoft Entra ID
• AD FS sign-ins in Microsoft Entra ID with Connect Health - preview