Symptoms
There were two issues with the configuration. Currently to access k2 designer, I have to remote to server with service account. I have configured K2 designer for SharePoint management to allow a group of users to access the smartforms. But when I access from outside, with IE, I keep getting to enter credential. That is incorrect, even after I entered the correct service account, it still keeps asking for credential.
The second one is that we are seeing two nodes in the Management console when trying to access the K2 Workflow Server. We want to only show one.
Diagnoses
Seeing the FQN and the Server name on the Management console usually means that the K2 server was configured as a Farm after it was configed as standalone.
Resolution
Re running the K2 Setup Manager showed us that the K2 Workspace site was set as a cluster with hostname not existent in the infrastructure. We changed the workspace to be a single site and not clustered with the right website name and we were able to access the workspace without errors. Also the node showing the Server name disappeared.