Windows Admin Centre Storage Migration Service wont validate creds in Cutover stage

Question

Hi guys, I have been battling my way through getting the Windows Admin Centre Storage Migration Service to work, you watch all the videos and read all the guides and it looks perfect for the job.

Until you try. After endless test runs and experiments using different versions I have finally reached a point where I need to Validate setting before the final Cutover. Now I get for the 1st item.

"We can connect to the source computer using a local user account. Fail: Access Denied!

The rest are all Pass

I have tried.

I have full access credentials.
Turned off the Firewalls.

New user with all required permissions.

What am I missing? Same credentials successfully completed the file transfer with only 10 files failed.

I don't see any errors in the event viewers on both servers. Both Servers are VMs on Hyper-V. new is 2022 old is 2019.