Satellite upgrade fails with 'Hammer configuration failed: Incorrect credential for <target_ID> user'

Issue

• While running the upgrade check, it fails with the following error:

  [root@satellite ~]# satellite-maintain upgrade check --target-version 6.11.z
  Checking for new version of satellite-maintain...
  Nothing to update, can't find new version of satellite-maintain.
  Running preparation steps required to run the next scenarios
  ================================================================================
  Setup hammer:
  Configuring Hammer CLI...
  Hammer admin password:
                                                                    [FAIL]
  Hammer configuration failed: Incorrect credential for <target_ID> user.
  --------------------------------------------------------------------------------`
  Check whether system has any non Red Hat repositories (e.g.: EPEL) enabled:
  \ Checking repositories enabled on the system                         [OK]
  --------------------------------------------------------------------------------`
  Scenario [preparation steps required to run the next scenarios] failed.
  
  The following steps ended up in failing state:
  
  [hammer-setup]
  
  Resolve the failed steps and rerun the command.
  
  If the situation persists and, you are unclear what to do next,
  contact Red Hat Technical Support.
  
  In case the failures are false positives, use
  --whitelist="hammer-setup"