"basic: the specified credentials were rejected by the server", error thrown by the ansible

"basic: the specified credentials were rejected by the server", error thrown by the ansible when building an image from windows-2019 data center.

#### Overview of the Issue
"basic: the specified credentials were rejected by the server", error thrown by the ansible when building an image from windows-2019 data center.

#### Reproduction Steps

1. Enable WinRM over HTTP
2. Create an user ansible with a password
3. Use this credential to authenticate to Windows server

### Plugin and Packer version
packer >=1.7.8 using latest
azure plugin= 1.4.0
ansible plugin = 1.0.3

powershell script file used in provisioning step
net user ansible SuperS3cr3t!!! /add /expires:never
net localgroup administrators ansible /add
wmic useraccount where "name='ansible'" set PasswordExpires=FALSE
winrm quickconfig -quiet
winrm enumerate winrm/config/Listener
winrm get winrm/config/service
winrm set winrm/config/service/auth '@{Basic="true"}'
winrm set winrm/config/client/auth '@{Basic="true"}'
winrm set winrm/config/service '@{AllowUnencrypted="true"}'
winrm set winrm/config/service/auth '@{CbtHardeningLevel="relaxed"}'
winrm get winrm/config/Service
winrm get winrm/config/Winrs
netsh advfirewall firewall add rule name= "Open Port 5985" dir=in action=allow protocol=TCP localport=5985

Write-Output '>>> Waiting for GA Service (RdAgent) to start ...'
while ((Get-Service RdAgent).Status -ne 'Running') { Start-Sleep -s 5 }
Write-Output '>>> Waiting for GA Service (WindowsAzureTelemetryService) to start ...'
while ((Get-Service WindowsAzureTelemetryService) -and ((Get-Service WindowsAzureTelemetryService).Status -ne 'Running')) { Start-Sleep -s 5 }
Write-Output '>>> Waiting for GA Service (WindowsAzureGuestAgent) to start ...'
while ((Get-Service WindowsAzureGuestAgent).Status -ne 'Running') { Start-Sleep -s 5 }
Write-Output '>>> Sysprepping VM ...'
if( Test-Path $Env:SystemRoot\system32\Sysprep\unattend.xml ) {
Remove-Item $Env:SystemRoot\system32\Sysprep\unattend.xml -Force
}
& $Env:SystemRoot\System32\Sysprep\Sysprep.exe /oobe /generalize /quiet /quit
while($true) {
$imageState = (Get-ItemProperty HKLM:\SOFTWARE\Microsoft\Windows\CurrentVersion\Setup\State).ImageState
Write-Output $imageState
if ($imageState -eq 'IMAGE_STATE_GENERALIZE_RESEAL_TO_OOBE') { break }
Start-Sleep -s 5
}
Write-Output '>>> Sysprep complete ...'

packer file:

variable "subscription" {
type = string
}

variable "resource_group" {
type = string
}

variable "gallery_name" {
type = string
}

variable "image_name" {
type = string
}

variable "gallery_image_version" {
type = string
}

variable "replication_regions" {
type = list(string)
}

variable "storage_account_type" {
type = string
}

variable "image_publisher" {
type = string
}

variable "image_offer" {
type = string
}

variable "image_sku" {
type = string
}

variable "image_version" {
type = string
}

variable "vm_size" {
type = string
}

variable "vnet_name" {
type = string
}

variable "subnet_name" {
type = string
}

variable "vnet_resource_group" {
type = string
}

variable "gallery_resource_group" {
type = string
}

variable "images" {
type = map(object({
image_publisher = string
image_offer = string
image_sku = string
image_name = string
image_version = string
}))
}
source "azure-arm" "windows-image" {

private_virtual_network_with_public_ip = true
virtual_network_name = var.vnet_name
virtual_network_subnet_name = var.subnet_name
virtual_network_resource_group_name = var.vnet_resource_group

os_type = "Windows"
build_resource_group_name = "${var.resource_group}"
vm_size = "${var.vm_size}"

communicator = "winrm"
winrm_use_ssl = true
winrm_insecure = true
winrm_timeout = "5m"
winrm_username = "ansible"
winrm_password = "SuperS3cr3t!!!"

managed_image_name = "test-windows"
managed_image_resource_group_name = "${var.resource_group}"

use_azure_cli_auth = true
}

build {

dynamic "source" {
for_each = var.images
labels = ["azure-arm.windows-image"]
content {
name = source.key
image_publisher = source.value.image_publisher
image_offer = source.value.image_offer
image_sku = source.value.image_sku
image_version = source.value.image_version

#Push the Image to the Shared Image Gallery
shared_image_gallery_destination {
subscription = "${var.subscription}"
resource_group = "${var.gallery_resource_group}"
gallery_name = "${var.gallery_name}"
image_name = source.value.image_name
image_version = "${var.gallery_image_version}"
replication_regions = "${var.replication_regions}"
storage_account_type = "${var.storage_account_type}"
}

}
}

provisioner "powershell" {
script = "winrmscript.ps1"
}

provisioner "ansible" {
playbook_file = "playbooks/windows-playbook.yml"
roles_path = "playbooks/roles"
use_proxy = false
user = "ansible"
extra_arguments = ["--extra-vars", "ansible_user=ansible ansible_password=SuperS3cr3t!!! ansible_shell_type=powershell ansible_shell_executable=None","-vvvv"]
ansible_env_vars = [ "WINRM_PASSWORD={{.WinRMPassword}}"]
}
}

variables:
subscription = "xxxxxxxxxxxxxxxx"

resource_group = "airad-agentinfra"

gallery_resource_group = "airadosimage"

gallery_name = "computegallery1"

image_name = "windows-base-2022"

gallery_image_version = "1.0.0"

replication_regions = ["westeurope"]

storage_account_type = "Standard_LRS"

image_publisher = "MicrosoftWindowsServer"

image_offer = "WindowsServer"

image_sku = "2022-Datacenter"

image_version = "latest"

vm_size = "Standard_B2s"

vnet_name = "packer-vnet"

subnet_name = "packer-subnet"

vnet_resource_group = "agentinfra"

images = {
"windows-2022": {
"image_publisher" : "MicrosoftWindowsServer",
"image_offer" : "WindowsServer",
"image_sku" : "2022-Datacenter",
"image_version" : "latest"
"image_name": "windows-base-2022"
}
}

**Error:**

azure-arm.windows-2022: connection: smart
azure-arm.windows-2022: timeout: 10
azure-arm.windows-2022: become_method: sudo
azure-arm.windows-2022: tags: ('all',)
azure-arm.windows-2022: inventory: ('/tmp/packer-provisioner-ansible2639300242',)
azure-arm.windows-2022: extra_vars: ('packer_build_name="windows-image"', 'packer_builder_type=azure-arm', 'ansible_user=ansible ansible_password=SuperS3cr3t!!! ansible_shell_type=powershell ansible_shell_executable=None', 'ansible_password=SuperS3cr3t!!!')
azure-arm.windows-2022: forks: 5
azure-arm.windows-2022: 1 plays in /home/vsts/work/1/s/agent-infra/packer/playbooks/windows-playbook.yml
azure-arm.windows-2022:
azure-arm.windows-2022: PLAY [all] *********************************************************************
azure-arm.windows-2022:
azure-arm.windows-2022: TASK [basic-windows : Install git] *********************************************
azure-arm.windows-2022: task path: /home/vsts/work/1/s/agent-infra/packer/playbooks/roles/basic-windows/tasks/main.yml:2
azure-arm.windows-2022: redirecting (type: modules) ansible.builtin.win_chocolatey to chocolatey.chocolatey.win_chocolatey
azure-arm.windows-2022: redirecting (type: modules) ansible.builtin.win_chocolatey to chocolatey.chocolatey.win_chocolatey
azure-arm.windows-2022: Using module file /opt/pipx/venvs/ansible-core/lib/python3.10/site-packages/ansible_collections/chocolatey/chocolatey/plugins/modules/win_chocolatey.ps1
azure-arm.windows-2022: Pipelining is enabled.
azure-arm.windows-2022: <13.93.94.133> ESTABLISH WINRM CONNECTION FOR USER: ansible on PORT 5985 TO 13.93.94.133
azure-arm.windows-2022: failed: [default] (item=git) => {
azure-arm.windows-2022: "ansible_loop_var": "item",
azure-arm.windows-2022: "item": "git",
azure-arm.windows-2022: "msg": "basic: the specified credentials were rejected by the server",
azure-arm.windows-2022: "unreachable": true
azure-arm.windows-2022: }
azure-arm.windows-2022: redirecting (type: modules) ansible.builtin.win_chocolatey to chocolatey.chocolatey.win_chocolatey
azure-arm.windows-2022: redirecting (type: modules) ansible.builtin.win_chocolatey to chocolatey.chocolatey.win_chocolatey
azure-arm.windows-2022: Using module file /opt/pipx/venvs/ansible-core/lib/python3.10/site-packages/ansible_collections/chocolatey/chocolatey/plugins/modules/win_chocolatey.ps1
azure-arm.windows-2022: Pipelining is enabled.
azure-arm.windows-2022: <13.93.94.133> ESTABLISH WINRM CONNECTION FOR USER: ansible on PORT 5985 TO 13.93.94.133
azure-arm.windows-2022: failed: [default] (item=azure-pipelines-agent) => {
azure-arm.windows-2022: "ansible_loop_var": "item",
azure-arm.windows-2022: "item": "azure-pipelines-agent",
azure-arm.windows-2022: "msg": "basic: the specified credentials were rejected by the server",
azure-arm.windows-2022: "unreachable": true
azure-arm.windows-2022: }

Start with the shown Azure ARM configuration, winrmscript.ps1, playbooks/windows-playbook.yml, and playbooks/roles/basic-windows/tasks/main.yml. Reproduce the Ansible WinRM connection using the listed versions and settings, then trace the authentication failure; done means identifying a verified configuration or plugin change that allows the Windows provisioning tasks to run.

Written by the indexing model from the issue text.