Users are unable to save passwords in Internet Explorer if their profile is managed by UPM

Configured following setting in Profile Management Policies

- Directories to Synchronize
AppData\Local\Microsoft\Credentials
AppData\LocalLow\Sun\Java\Deployment\Security
Appdata\Roaming\Microsoft\Credentials
Appdata\Roaming\Microsoft\Crypto
Appdata\Roaming\Microsoft\Protect
Appdata\Roaming\Microsoft\SystemCertificates

- Folders to mirror:
AppData\Local\Microsoft\vault
AppData\Roaming\Microsoft\Windows\Cookies
AppData\Local\Microsoft\Windows\INetCookies
AppData\Local\Microsoft\Windows\WebCache

- Under Group Policy Preference 
"create" with "apply once and do not reapply" and "apply in user's context":
Folder - %SystemDrive%\users\%Username%\AppData\Local\Microsoft\Vault