Hi Salahuddin,
Did you create a user in local Active Directory Users and Computers console?
And I'd like to confirm whether you have involved any 3rd party tool/app in the local AD to create users automatically.
If possible, please provide the steps you have done to create new user in your local AD (some screenshots are highly appreciated and you can hide sensitive customer information), we will try to perform the steps you provide and test it on our side.
Thanks,
Bourne Zhang