New Environment Verification fails Saying invalid ‘Domain User Name’ using Microsoft Test Manager

Problem : This issue happens if you create a template with Os profile properties set to join a domain and the user for joining domain is selected from list of run as accounts in System Center Virtual Machine Manager. Refer the following screen shots for details

Template OS Profile Details:

Microsoft Test Manager Error Message :

Solution : Instead of using run as account for joining domain use “Specify credentials to use for joining the domain” option for joining domain