Follow these steps to resolve the issue:
1. Log in to the system using the same domain credentials as referred to in the AD configuration in Datamaker/TDoD configuration editor.
2. Look up the domain for the Active Directory controller using this command from the Windows command prompt: net user <username> /domain
3. The value of this domain then needs to be inserted in the "Domain" field of the TDOD Configuration editor (Authentication tab, authentication mode "Active Directory").
Once the right domain is put in, the "Validate" operation should not give any errors. Subsequently, connection to the service layer from Datamaker, Javelin, and Agile Requirements Designer should work without issue.