Password protected file sharing not working for one Mac ID, but OK for another, Monterey 12.2.1

I can setup a new admin account on my mac (Mac#1), share a folder from that account (owner can read/write, others read only), and connect to that mac share from another mac (Mac#2) (password required, no guest access) without any problems. This is over ethernet and on the same subnet. So file sharing is working, no network issues.

However, using my own admin account on Mac#1, if I share a folder (owner can read/write, others read only), and connect to that mac share from Mac#2, I can see the share and choose to signin as a registered user, but the password is NOT working (the dialog shakes left and right, no error message). The typed password is correct.

I have tried the following multiple times:

•Deleted the passwords from the keychain on both macs.

•Changing my admin password on one or both macs.

•Turned file sharing off, reboot, restarted file sharing, reboot again.

•Tried with and without this nsmb.conf file in /etc/ and rebooting:

[default]

protocol_vers_map=6

port445=no_netbios

signing_required=no

•Changed the share to allow "guests" does work, but I MUST have password protection for this share. So, not an option.

•Reinstalled Monterey on both macs.

•Tried with and without using the "Share files and folders using SMB" options on (new admin account does not need this on to work since I am sharing mac to mac).

Nothing makes any difference.

I did not have this sharing setup before Monterey 12.2, so I don't know if it is an update issue. Also, my admin login is the same ID on both Mac#1 and Mac#2, although I have tried with the same and different passwords. Note that both macs are new and were setup using the SAME timemachine backup, so there is likely some credential somewhere cloging up the works, but I have deleted the network passwords from the keychain without fixing the issue.

Any suggestions?