Symptoms
Users who have never access the SharePoint Portal before cannot save data to SharePoint list from K2 SmartForm.
Diagnoses
New SharePoint users were not being synced with SharePoint and K2 for SharePoint.
Resolution
Group sync when new users are added. Also, send the new SP users to an SP page so they can open the K2 form from there, this way SharePoint will create their user list profile and user profile on the SharePoint DB before they access K2.