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I have a Windows 10 machine (22H2) which must share files in foreign local networks, let's call it the "server". I have created a shared folder and can perfectly access it from other Windows computers (Win10 or Win11) while I am sharing with "Turn off password protected sharing". Once I turn on "Password protected sharing" clients correctly ask for credentials. When I enter the username and password of a local user account of the server I get "The username or password is incorrect".

Password protected sharing works perfectly fine the other way round, i.e. if I setup a share on other computers and then access it from "the server" or other computers using a local accounts on those other machines.

I have tried two different local accounts on the server, one User, one Administrator, same result. I can perfectly use those two accounts to sign in on the server. It looks like the local accounts on the server are not available/usable for file sharing.

The other machines only have local accounts whereas on the server there is a Microsoft account in addition. Could that be it? The MS account is the main account on the server and should not be used for sharing.

EDIT: I worked through all 13 points mentioned in Option One of this tutorial on tenforums.com so I am quite sure the regular settings to make this work are ok, including "Private" network, network discovery, file & printer sharing, services running, ... I got this to work on several other machines just this server is nasty.

AndreasS
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    Is the network on your computer defined as Private or Public, and is it the same for the other computers? What are the Permissions that you specified for the share? – harrymc May 15 '23 at 09:49
  • You generally need the same credentials on each machine (Network Discovery; File and Print, Password protected sharing). All computers should have passwords. – John May 15 '23 at 11:22
  • @harrymc: Private network (I have extened my question). Permissions on shared folder: Everyone - Full Control. On the Security Tab I have added Group Everyone with Full Control. Not sure if all this really needed. – AndreasS May 16 '23 at 06:48
  • @John: (I have extended my question). All computers involved have local user accounts with passwords. No Guest accounts involved. – AndreasS May 16 '23 at 06:48
  • @harrymc: Although your answer here https://superuser.com/questions/827986 from 2017 is about an issue WITHOUT password (i.e. the inverse) it also involves a MS account so it might be related - just a guess... – AndreasS May 16 '23 at 06:58
  • It's the Microsoft account, I had the same issue. Go to settings and switch to local user credentials instead, SMB authentication will work after that. – Arctiic May 16 '23 at 07:26
  • @harrymc: I mentioned the MS account in the first place as that was the only difference on the PC not working. – AndreasS May 17 '23 at 10:04
  • @Arctiic & harrymc: Just to confirm: Windows 10/11 does NOT allow password protected file sharing using local accounts if a Microsoft account exists on the sharing PC. Correct? / Technically not obvious and a strong argument for not using MS accounts. / So the sad answer would simply be: MS does not allow this. / I am not after credits; if any of you want to post the answer please go ahead. – AndreasS May 17 '23 at 10:06
  • @AndreasS: It's worse than that : It works if *all* computers use the same type of account. Sharing is not possible between local and Microsoft accounts. – harrymc May 17 '23 at 13:42

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