Multiple realms, EEM and local with unique ID fails with "misconfigured"

Products

• DX Application Performance Management
• CA Application Performance Management (APM / Wily / Introscope)

Issue/Introduction

Mix of EEM and local (users.xml) fails 

I have removed user entries from users.xml but left the Groups structure. Only Admin user with complex password defined

com.wily.introscope.spec.server.beans.usermgmt.UserMgmtException: Local Users and Groups realm is misconfigured. Error using new settings for Realm: XMLFileManager.CouldNotParseConfigFileError
        at com.wily.introscope.server.beans.usermgmt.xml.UserManagementConfig.initializeRealms(UserManagementConfig.java:173)
        at com.wily.introscope.server.beans.usermgmt.xml.UserManagementConfig.initialize(UserManagementConfig.java:75)
        at com.wily.introscope.server.beans.usermgmt.internal.UserManagementServiceBean.activate(UserManagementServiceBean.java:186)
        at com.wily.isengard.container.beans.AIsengardBean.doStart(AIsengardBean.java:92)
        at com.wily.util.ALifeCycle.start(ALifeCycle.java:86)
        at com.wily.isengard.container.BeanActivator.activateBean(BeanActivator.java:365)
        at com.wily.isengard.container.BeanContainerCore.addBean(BeanContainerCore.java:150)
        at com.wily.isengard.catalog.server.CatalogCore.addBeanToCatalogAndCore(CatalogCore.java:82)
        at com.wily.isengard.catalog.server.CatalogCore.addBean(CatalogCore.java:148)
        at com.wily.isengard.catalog.server.CatalogBean.addBean(CatalogBean.java:66)
        at com.wily.introscope.server.enterprise.EnterpriseServer$IntroscopeIsengardServer.createAppBean(EnterpriseServer.java:2175)
        at com.wily.introscope.server.enterprise.EnterpriseServer$IntroscopeIsengardServer.access$0(EnterpriseServer.java:2169)
        at com.wily.introscope.server.enterprise.EnterpriseServer.initialize(EnterpriseServer.java:552)
        at com.wily.introscope.server.enterprise.EnterpriseServer.doStart(EnterpriseServer.java:387)
        at com.wily.util.ALifeCycle.start(ALifeCycle.java:86)
        at com.wily.introscope.server.enterprise.EnterpriseServer.<init>(EnterpriseServer.java:330)
        at com.wily.introscope.server.enterprise.EnterpriseServer.<init>(EnterpriseServer.java:309)
        at com.wily.introscope.server.enterprise.EnterpriseServer.start(EnterpriseServer.java:1616)
        at com.wily.introscope.em.internal.Activator.startEM(Activator.java:119)
        at com.wily.introscope.em.internal.Application.start(Application.java:27)

Environment

Release : 10.7.0

Component :

Resolution

It was complex password that caused the error. Simplifying the password with regard to length and use of special chars resolved the issue.