User Management Tool (UMT) fails to connect and shows and error; System.Exception: UnProtect

The log file contains the following kind of entries:

ShareFile User Management Tool - Command-Line Interface.
* v 1.8.1.0
Initializing ...
Verifying file system paths ...
Verifying registry values ...
Initializing Google Analytics Connector ...
Processing / API Diagnostic Logging: DISABLED
AD Diagnostic Logging: DISABLED
Loading Job: continuous_shedule.dat ...
PM ERROR: UnProtect
PM MEMBER: LoadJob
PM ASSEMBLY: UmtJobProcessor
PM SOURCE FILE: Program.cs
PM LINE #: 417
PM DETAIL:
System.Exception: UnProtect ---> System.Security.Cryptography.CryptographicException: Key not valid for use in specified state.

    at System.Security.Cryptography.ProtectedData.Unprotect(Byte[] encryptedData, Byte[] optionalEntropy, DataProtectionScope scope)
    at ShareFile.Sfadi.ProtectedDataProvider.UnProtect(Byte[] value)
    --- End of inner exception stack trace ---
    at ShareFile.Sfadi.ProtectedDataProvider.UnProtect(Byte[] value)
    at ShareFile.Sfadi.ShareFileCredentials..ctor(ShareFileCredentialsDto dto, ProtectedDataProvider protector)
    at ShareFile.Sfadi.SfadiSyncJob..ctor(SfadiSyncJobDto dto, ProtectedDataProvider protector)
    at ShareFile.Sfadi.SfadiSyncJob.Load(String filepath, ProtectedDataProvider protector)
    at ShareFile.Sfadi.Program.LoadJob()
PM ERROR: ShareFile Active Directory Synchronization Failed.
PM MEMBER:
PM ASSEMBLY:
PM SOURCE FILE:
PM LINE #: 0
*** Done ***

Problem Cause

Server was configured to use a proxy server even though a proxy connection was not needed.