This issue resolved in:
Workaround:
To workaround the issue, disable validation in the Client
For Versions
6.x Disable validation by navigating to Hosts and Clusters > vCenter Server > Configure > Settings > General then click Edit and select User directory to uncheck Validation to disable it
For Versions
5.x Disable validation by navigating to Hosts and Clusters > vCenter Server > Manage > Settings > General then click Edit and select User directory to uncheck Validation to disable it