Network file share login doesn't work proper after 2021 Security Updates

Computers that just updated to 2021-002 Mojave Security Update and 2021-001 Catalina Supplemental Update logging into other computers does not work properly now.

In finder, Connect to a computer using Registered user and password logs in and seems like it works.

But the Connected as: shows the email address used in Apple ID instead of the normal short user name.

Not able to access folders normally, access is limited and blocked even for Admin users.

Mojave computer that is not updated to 2021-001 or 2021-002 is able to log in without issue to a computer that was updated. So it seems this affects only outgoing login. Updated computer cannot login to another computer file sharing normally.

Anyone else experiencing this issue?