Customer started to notice that NTLM authentication is not working with Google Chrome. An authentication pop-up is presented to client when proxy challenges for authentication. Even after filling in the correct user information, the pop-up will continue to show up.
The issue was identified to be a bug in chrome browser (bug# 544255). Due to this, NTLM authentication for any HTTP request is getting broken and user will be constantly prompted for credentials. Details on this is available here
Google released a fixed version of 47.0.2526.80 which is now available for public users. Updating to this version should fix the authentication issue.