You can try to uncheck the option 'Enable Integrated Windows Authentication' in IE browser/ Internet Option/ Advanced. After that close IE and access to your application again, a Windows popup should be opened to input your username and password.

I tried in Chrome browser after Unchecking the option and restarted the machine but still facing the same issue.

My first priority is to resolve the "Mercury Web Recorder NTLM Authentication" popup issue. I am not expecting this popup during recording.

If the issue still there, Can we please   open a support case to investigate ? 

Yes still issue exist. Already raised ticket last week with Micro focus community and they are still analyzing it.

You will need to please open a Ticket with Microfocus support, not Micofocus Community 

Yeah opened with support team only. My mistake.

Good News the issue is solved 

please check the KM for the solution 

portal.microfocus.com/.../KM000010483

@mohammed hamed :- You forgot to mention in ticket that we need to select Socket Level option SSL 2/3 Version in recording option. Because for other options the popup window still display.

Post our discussion in meeting, i tried in Testing Machine, authentication popup window is not displaying but events are not getting generated. Do you have any idea why events are not getting generated while selecting SSL 2/3?

Later i tried in another LG it worked just by changing the socket level version to SSL 2/3.