The package server is getting invalid credentials from the NS. The logs from the package server read "no connection to server" with the package logs reading UNC Transfer failed access is denied.
Changes to the security in the agent caused the agent to not be able to save the new agent credentials
A Pointfix has been created for this issue for V7
Also rollups V8 and V9 include this fix
ITMS 7.1 sp2 mp1 V7