The issue occurs when the user attempting to register with vCenter Server does not have login permissions to the Domain Controller at the Active Directory Level.
Resolution
To resolve this issue, edit the Active Directory User that is registering Update Manager to vCenter Server.
To edit the Active Directory User:
Log in to the Active Directory Domain Controller as the DC Administrator.
Navigate to AD Users and Groups > Users > User Name > Properties > Account > Log On To.
Add Domain Controller to the list of allowed machines.