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I'm rather confused by this one and can't see any options in previous posts about similar things.

I've created a credential -> proxy account, that will run a PowerShell script.

When I run the agent job using the proxy account, I get an error saying username or password are incorrect.

Unable to start execution of step 1
(reason: Error authenticating proxy Domain\UserAccount,
system error: The user name or password is incorrect.).
The step failed.

I know the password is correct. I've logged into servers using the account and password, and have re-applied it 2-3 times trying copy and paste from password safes to text files, to manually putting it in. I'm 100% sure the password is correct.

I have restarted the Agent/SQL Server and even restarted the whole OS, i've never run into this problem before. I have completely deleted the proxy and credential, then re-created, and I still get the same error message

Just created another credential and proxy using the below code, so I know the password is 100% correct using my account so local admin, sysadmin on the box, and still get the same error.

USE [master]
GO
CREATE CREDENTIAL [test] 
WITH IDENTITY = N'domain\myAccount', 
SECRET = N'SuperSecretPassword'
GO

USE [msdb]
GO
EXEC msdb.dbo.sp_add_proxy
    @proxy_name=N'ProxyTest',
    @credential_name=N'test', 
    @enabled=1
GO
EXEC msdb.dbo.sp_grant_proxy_to_subsystem
    @proxy_name=N'ProxyTest', 
    @subsystem_id=12
GO

Any suggestions?

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