2650814 - Destination of WD Java application misconfigured - RFC_ERROR_LOGON_FAILURE - Name or password is incorrect

You try to open Webdynpro JAVA application on Portal, the following nested exception is received in default trace:

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[EXCEPTION]
[...]
com.sap.tc.webdynpro.services.exceptions.WDRuntimeException: Exception was thrown in preprocessing phase of application session tRjOxTWvRTi0sakcRwk62g--PldbGDUWTem9T7W9G2xM3w--/pcd:portal_content/com.appc.com.sa.AdvancedPortalContent/every_user/com.sap.pct.erp.ess.bp_folder/com.sap.pct.erp.ess.pages/com.sap.pct.erp.ess.employee_search/com.sap.pct.erp.ess.whoiswho/sap.com/ess~wiw/WhoIsWhoApplication/base/. The causing exception is nested. RID=f9b74ec6c54c11e7c1a20000003f877a
[...]
Caused by: com.sap.dictionary.runtime.DdException: failed to create provider: com.sap.mw.jco.JCO$Exception: (103) RFC_ERROR_LOGON_FAILURE: Name or password is incorrect (repeat logon){jco.client.lang=EN, jco.client.client=XXX, jco.client.passwd=XXXXXXXXX, jco.client.user=<USER>, jco.client.mshost=<HOSTNAME>, jco.client.group=SPACE, jco.client.r3name=<SID>}
[...]
Caused by: RfcException: [null]
message: Name or password is incorrect (repeat logon)
Return code: RFC_SYS_EXCEPTION(3)
error group: 103
key: RFC_ERROR_LOGON_FAILURE
[...]
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• SAP Netweaver AS 7.1+
• Enterprise Portal

WDRuntimeException, Webdynpro JAVA, sap.com/ess~wiw/WhoIsWhoApplication, DdException, com.sap.mw.jco.JCO$Exception, (103) RFC_ERROR_LOGON_FAILURE, Name or password is incorrect, jco.client.user, jco.client.passwd, JCO/RFC connection, WebDynpro Framework, Webdynpro Content Administrator, Maintain JCo Destinations, METADATA, MODELDATA , KBA , BC-JAS-SEC-LGN , Logon, SSO , Problem