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Installing vCenter Configuration Manager 5.x fails with the error: Windows NT user or group 'FQDN \username' not found (2018720)

Cannot install vCenter Configuration Manager (vCM)
Installing vCM fails
You see the error:

_com_error Exception. crComError.Description: Server: VCMSERVER, Object: VCM.domain\username.ecm_sp_security_collector_service_account_setup, Nest Level: 1, Line: 10, @@SPID: 51, User: domain\username, Msg: ; ERROR_MESSAGE=Windows NT user or group 'FQDN \username' not found. Check the name again.; ERROR_LINE=10; @@ERROR=15401 - crComError.Source: Microsoft OLE DB Provider for SQL Server

Where FQDN is the Fully Qualified Domain Name, such as example.local or my.domain.com.

This issue occurs if the installation is unable to determine users in the domain using the FQDN format.

To resolve this issue, when entering the user account credentials during the installation, use the domain short name (NetBIOS), instead of the FQDN.

To request a new product feature or to provide feedback on a VMware product, please visit the Request a Product Feature page.

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