Recently, We got this issue on one of the VM where we had Sitecore XP, and Sitecore XC installed.
After a quick investigation, were able to resolve it, here are the details for the quick fix.
The issue was because we had recently updated the password for a local user XX which we used to connect with the local machine with the VM services.
After resetting the password and grating the permission, We were able to resolve this issue.
Easy fix :)
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