The following error appears when trying to deploy using MMC Package and Deployment tool:
"System.Reflection.TargetInvocationException: C:\ProgramData\Temp\c4e8b8003ae64541b933e26a5880869c\Deployment\K2Project3.msbuild(82,5) : error : Notification Service: Task Error: Primary Credentials Not Authenticated"
This issue could be caused by an incorrect value for the "ServiceObject Server" and "SmartObject Server" Environment Fields.
Check if the connection string is missing the "IsPrimaryLogin=TRUE" parameter/argument.
Read more about understanding Environment Libraries here.
Correcting the value of the connection string for those environment fields will resolve the issue.