Symptoms
When using non-'Integrated Security' in PandD MMC and entering an invalid account (this occurs for the SQLUM label as well as when specifying a non-existent AD account), it does not validate the account when clicking 'OK' allowing for the clicking of the 'Create New Package' option and resulting in a 'Primary Credentials Not Authenticated. Session Not Authenticated.' error. When using a valid account everything works as designed.
Diagnoses
Behavior was reproducible and is a usability bug.
Resolution
A feature request was logged to validate the credential entered when clicking the 'OK' button during the PandD MMC 'Add new server'/'Edit Server' wizard such that the error should be thrown during this step if an invalid credential was entered.
Please ensure that a valid account and password is entered to avoid error.