ArcGIS Enterprise: Error encountered when trying to create the service proxies and update the configuration

Error Message

Attempts to configure ArcGIS Online utility services in ArcGIS Enterprise fail and return the following error:

Error:
An error was encountered when trying to create the service proxies and update the configuration.

Cause

• The login credentials of the ArcGIS Online user account are incorrect.
• The ArcGIS Online account has multifactor authentication enabled.

Solution or Workaround

Depending on the cause, the workarounds provided are applicable.

• Verify the correct username and password are entered with case sensitivity applied. Refer to Portal for ArcGIS: Configure ArcGIS Online utility services for more information.
• Disable multifactor authentication for the specific username. Refer to Portal for ArcGIS: Multifactor authentication for instructions.