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VM Cloning Authentication Failure Lab

Reproducible Lab Guide: VM Cloning Authentication Failure​

Date: 2026-03-04

See the companion case study: /case-studies/vm-cloning-auth-failure

Objective​

Build a peer-to-peer Windows network using virtual machines, reproduce an authentication failure caused by improper VM cloning, and then fix it.

Lab Requirements​

  • 2 to 3 Windows virtual machines
  • Virtual network on the same subnet
  • Administrator access on all systems

Environment​

  • Platform: Virtual machines in a multi-node Windows environment
  • Network Type: Peer-to-peer
  • Components:
    • Multiple Windows clients
    • Shared folders on each system
    • Local user-based authentication
  • Connectivity:
    • ICMP (ping): successful
    • SMB (port 445): reachable

Step 1: Build Baseline (Working State)​

  1. Install Windows on each VM individually
  2. Assign IP addresses in the same subnet

Create a Local User​

net user User1 Password123 /add

Create a Shared Folder​

mkdir C:\Shared
net share Shared=C:\Shared /grant:User1,FULL

Validate Access​

net use \\10.1.1.10\Shared /user:User1 Password123

Expected Result: access succeeds

Step 2: Failure Injection (Break It)​

  1. Shut down a working VM
  2. Clone the VM using the hypervisor
  3. Boot both the original and cloned systems on the same network

Attempt Access Again​

net use \\10.1.1.10\Shared /user:User1 Password123

Expected Result: access fails

Observed Failure​

  • System error 86 has occurred
  • Authentication fails even though the credentials are correct

Step 3: Reproduce the Investigation​

Run the following from another VM:

Check Connectivity​

ping 10.1.1.10
Test-NetConnection 10.1.1.10 -Port 445

Discover Shares​

net view \\10.1.1.10

Attempt Authentication​

net use \\10.1.1.10\Shared /user:User1 Password123

Expected Result​

  • Connectivity succeeds
  • Shares are visible
  • Authentication still fails

Step 4: Validate Configuration​

Validate Shares on the Local System​

Get-SmbShare
Get-SmbShareAccess -Name Shared

Validate NTFS Permissions​

icacls C:\Shared

Expected Result​

  • Share exists
  • Intended user has access
  • NTFS permissions align with the share configuration

Expected vs Actual Behavior​

Test 1: Network Connectivity (ICMP)​

Command​

ping 10.1.1.10

Expected Output​

  • Replies received from target host
  • No packet loss

Actual Output​

  • Replies received successfully
  • 0% packet loss

Test 2: SMB Port Availability​

Command​

Test-NetConnection 10.1.1.10 -Port 445

Expected Output​

TcpTestSucceeded : True

Actual Output​

TcpTestSucceeded : True

Test 3: Access Shared Folder​

Command​

net use \\10.1.1.10\Shared /user:User1 Password123

Expected Output​

  • Command completes successfully
  • Drive mapping established or access granted

Actual Output​

System error 86 has occurred.
The specified network password is not correct.

Test 4: Share Visibility​

Command​

net view \\10.1.1.10

Expected Output​

  • Shared resources displayed

Actual Output​

  • Shares listed correctly
  • Access denied when attempting to connect

Commands Used (Step-by-Step)​

Check Connectivity​

ping 10.1.1.10
Test-NetConnection 10.1.1.10 -Port 445

Discover Shares​

net view \\10.1.1.10

Attempt Authentication​

net use \\10.1.1.10\Shared /user:User1 Password123

Validate Shares on the Local System​

Get-SmbShare
Get-SmbShareAccess -Name Shared

Validate NTFS Permissions​

icacls C:\Shared

Failure Injection Scenario​

Scenario Name​

Cloned Identity Collision​

Goal​

Simulate an authentication failure caused by duplicate or conflicting machine identity.

Trigger​

  • Clone a Windows VM without running Sysprep
  • Run both the original and cloned system on the same network

Observable Indicators​

  • Authentication failure with System error 86
  • Network connectivity remains normal
  • Shares are visible but inaccessible

Recovery Actions​

  • Delete the cloned VM
  • Rebuild the affected system from a fresh install
  • Or generalize the image properly with Sysprep

Fix the Environment​

  1. Delete the cloned VM
  2. Rebuild the system from a fresh install, or use Sysprep before cloning
  3. Recreate users and shares
  4. Retest authentication
net use \\10.1.1.10\Shared /user:User1 Password123

Expected Result: access succeeds

Diagram (Mermaid)​

Topology: VM A ↔ VM B​

What this shows​

  • Two Windows virtual machines communicating on the same network
  • ICMP validates connectivity
  • SMB on port 445 is used for file sharing

Why it matters​

  • Confirms the network layer is functioning
  • Helps isolate that the issue is not basic connectivity

SMB Authentication Flow​

What this shows​

  • The step-by-step SMB authentication sequence
  • The stage where credentials are validated and mapped to identity

Why it matters​

  • Identifies where the failure actually happens
  • Shows that the issue is identity resolution, not simply a bad password

Failure Point: SID Conflict​

What this shows​

  • The cloned system carries conflicting identity context
  • Authentication breaks when Windows cannot resolve identity reliably

Why it matters​

  • Explains why valid credentials still fail
  • Demonstrates that SID and identity context are critical to authentication

Overview​

TODO

Steps​

TODO

Validation​

TODO

Lessons Learned​

TODO

Related Content​