I cannot access password protected directory with valid password, authentication dialog pops up again.
WindowsAuthenticationModule is placed before AnonymouseAuthenticationModule in Modules order list in IIS. Due to this IIS uses incorrect authentication mechanism. The issue is considered to be a software issue with ID PPPM-1130 which will be fixed in future product updates.
In order to fix the issue it is needed to change modules order:
- Access IIS Manager > Home > Modules > View Ordered List
- Find WindowsAuthenticationModule and move it down. Place it after AnonymousAuthenticationModule.