I am trying to connect my ALM (17.1)  to UFT one but when i try to "check host" or run an automation script, the actions fails with the following error

Finished with errors. Check Host has failed on all purposes: Lab Service failed to log in as XXXX to the testing host
Check the testing host for the following:
1. The testing host has reached its limit of logged in users. To execute this test, log out one of the currently logged in users.
2. The information for user, password, or domain is incorrect.
For more information, see the ALM Lab Management Guide.

There are no other users connected to the host machine and the user being used is a service account specifically created for this purpose. the service account has all the required admin privileges.

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