Why audit log report SM_STATUS "Server is Configured to Deny Anonymous Binds"
The error message was return by LDAP (OID).
The reason that it return the message is because the anonymous bind disable (orclAnonymousBindsFlag=0). This is Oracle Directory setting.
When end user submit invalid password, the OID cannot bind with it and try to use the anonymous bind. However, since the anonymous bind is disabled, it return the error message to policy server.
User directory is Oracle Internet Directory (OID 126.96.36.199)
orclAnonymousBindsFlag setting information