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It started working when I followed exactly what is described in the the KB: https://knowledgebase.paloaltonetworks.com/KCSArticleDetail?id=kA10g000000boBiCAI I had to move the user account (mapped to the fqdn) to the OU "Users" in order to avoid the password error. Other point is: I was using the same account created for LDAP queries (And it is a Domain Admin account). When I created a new account and followed the procedure exactly how it is it worked.
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