User authentication fails when the Virtualize a Physical Machine wizard attempts to connect a Windows physical machine.

After you provide user credentials for the physical machine, the Virtualize a Physical Machine wizard reports that your user credentials are incorrect or you have insufficient permissions to connect to the physical machine.

Simple file sharing or User Account Control (UAC) is enabled on the physical machine.

Perform the steps in Prepare a Windows Physical Machine for Virtualization and rerun the Virtualize a Physical Machine wizard.