3803388 - 'HANA audit policies could not be set' error during Upgrade - Phase MAIN_NEWBAS/HDB_AUDIT_POLICY

During the upgrade process, phase MAIN_NEWBAS/HDB_AUDIT_POLICY, this error occurrs:

CURRENTPHASE MAIN_NEWBAS/HDB_AUDIT_POLICY
...started at YYYYMMDDHHMMSS
# Using phase log file 'HDBAUDITPOLICY.LOG'.
...finished at YYYYMMDDHHMMSS with status ABORTED.
# Error message set: 'HANA audit policies could not be set!'
...begin dialog at YYYYMMDDHHMMSS

HDBAUDITPOLICY.LOG has below details:
================================================================================================
1 ETQ201 Entering upgrade-phase "MAIN_NEWBAS/HDB_AUDIT_POLICY" ("YYYYMMDDHHMMSS").
2 ETQ367 Connect variables are set for standard instance access: System-nr = '**', GwService = '**' Client = '***'.
1 ETQ200 Executing actual phase 'MAIN_NEWBAS/HDB_AUDIT_POLICY'.
1 ETQ000 ==================================================
2 ETQ011 --------------------------------------------------
2 ETQ399 [START OF HDBSLLIB] using class name 'AUDIT_POLICY_CONFIGURATION'
3 ETQ121 YYYYMMDDHHMMSS: PID 954722 execute '~/../jvm/jre/bin/java -cp ~/bin/com.sap.hdb.sl.lib.jar:~/bin/com.sap.hdb.core.jar com.sap.hdb.core.main.cmd.HdbCmdMain ********=AUDIT_POLICY_CONFIGURATION DATABASE_HOSTNAME=********* INSTANCE_NUMBER=**JDBC_PATH=~/bin READ_FROM_STDIN=TRUE DATABASE_SID=IP6 AUDIT_ACTION=SET_AUDIT_POLICIES DATABASE_MODE=MULTIPLE SYSTEMDB_PORT=30213' in background, output written to '/install/***/SUM/abap/log/HDB_SET_AUDIT_POLICIES.LOG'.
3WETQ122 YYYYMMDDHHMMSS: PID ******* exited with status 1 '<UNKNOWN>' (time:     2.0/    1.8/    0.2/437MB real/usr/sys/maxmem)
4 ETQ399 YYYYMMDDHHMMSS: WAITED for 1 processes to finish, 0 failed.
4EETQ399 The tool 'java' returned an unexpected return code '1'!
1EETQ399 Last generated error message is: HANA audit policies could not be set!
1EETQ204 Upgrade phase "HDB_AUDIT_POLICY" terminated with severe errors ("YYYYMMDDHHMMSS").

HDB_SET_AUDIT_POLICIES.LOG shows:
================================================================================================
TIMESTAMP  | com.sap.hdb.sl.lib.user.password.HdbPassword | Error retrieving password policy from database: com.sap.db.jdbc.exceptions.SQLInvalidAuthorizationSpecExceptionSapDB: [10]: authentication failed. Using default values.

• SAP HANA DB Version 1.0
• SAP HANA DB Version 2.0
• S/4 HANA 1909