The built-in admin account lacks proper permissions.
Resolution
Navigate to "gear icon" > "Login Accounts"
View details for the "admin" account
Verify that the account has the "Manage Users" permission
Additional Information
Confirm the hostname from the 401 error matches the URL in the "Settings > System Configuration > General tab" in the App Control console; restart the App Control server services if the URL in the General tab needs to be changed.