You have created a new Distribution Center (DC) that points to the localhost (the LiveUpdate Administrator server itself). When the connection is tested, it fails.
The "Login credentials for distribution access to location:" are mis-configured.
Configure the Login ID to be lua and the password to be lua.
For version LUA 2.3.3 or later, The default distribution center password is changed and it is now
Applies To
LUA 2.3.1.82