HCX Manager login with a non-local user account fails with the following error: Invalid username or password, or too many active sessions. Health check on the HCX manager shows failure in name resolution (under ICMP test for vCenter).
Following exception is logged on the HCX manager in /common/logs/admin/web.log
VMware HCX
Rebooting the HCX manager appliance fixed the DNS configuration/realization issue and the HCX manager got the DNS that was configured from the GUI.