AD user is not able to login - Error retrieving access check result: Host Access Denied

Issue

• AD user is not able to login to the system, sssd logs below errors in sssd_$domain.log and /var/log/secure shows:

/var/log/secure:

Mar 13 12:04:33 servera sshd[2701565]: pam_sss(sshd:auth): authentication success; logname= uid=0 euid=0 tty=ssh ruser= rhost=x.x.x.x user=test_user@example.local.com
Mar 13 12:04:41 servera sshd[2701565]: pam_sss(sshd:account): Access denied for user test_user@example.local.com: 6 (Permission denied)
Mar 13 12:04:41 servera sshd[2701565]: Failed password for test_user@example.local.com from x.x.x.x port 41874 ssh2
Mar 13 12:04:41 servera sshd[2701565]: fatal: Access denied for user test_user@example.local.com by PAM account configuration [preauth]

sssd$domain.log:

(Mon Mar 13 12:04:41 2023) [sssd[be[example.local.com]]] [sdap_access_filter_done] (0x0100): User [test_user@example.local.com] was not found with the specified filter. Denying access.  <----
(Mon Mar 13 12:04:41 2023) [sssd[be[example.local.com]]] [sdap_access_filter_done] (0x0400): Access denied by online lookup
(Mon Mar 13 12:04:41 2023) [sssd[be[example.local.com]]] [ldb] (0x4000): Added timed event "ldb_kv_callback": 0x5563a2fcab60

(Mon Mar 13 12:04:41 2023) [sssd[be[example.local.com]]] [ldb] (0x4000): Added timed event "ldb_kv_timeout": 0x5563a2ff4730

(Mon Mar 13 12:04:41 2023) [sssd[be[example.local.com]]] [ldb] (0x4000): Running timer event 0x5563a2fcab60 "ldb_kv_callback"

(Mon Mar 13 12:04:41 2023) [sssd[be[example.local.com]]] [ldb] (0x4000): Destroying timer event 0x5563a2ff4730 "ldb_kv_timeout"

(Mon Mar 13 12:04:41 2023) [sssd[be[example.local.com]]] [ldb] (0x4000): Destroying timer event 0x5563a2fcab60 "ldb_kv_callback"

(Mon Mar 13 12:04:41 2023) [sssd[be[example.local.com]]] [sysdb_set_entry_attr] (0x0200): Entry [name=test_user@example.local.com,cn=users,cn=example.local.com,cn=sysdb] has set [ts_cache] attrs.  <<
(Mon Mar 13 12:04:41 2023) [sssd[be[example.local.com]]] [sdap_access_done] (0x0400): Access was denied.
(Mon Mar 13 12:04:41 2023) [sssd[be[example.local.com]]] [ad_sdap_access_done] (0x0040): Error retrieving access check result: Host Access Denied   <----