After additional debugging we learned that the issue manifests itself on 
servers that have a difference between the Active Directory object name and the 
DNS name (our server administrators confirmed this is the case for the server 
we were trying to connect to). If we created a DNS alias to match the AD name, 
then the connection would work again.

For example:
AD Name: Fileserver
DNS Name: Fileserver1
This does not work. However if we add the alias:
DNS Name Alias: Fileserver -> Fileserver1
Then it works



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