Unable to configure 'Send to Connections' in SharePoint 2010

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I was working on an issue where customer were unable to configure 'Send to Connections' in their SharePoint 2010 environment. I had a look at the ULS logs and it was throwing 401 exception.

w3wp.exe (0x3A94) 0x31A8 SharePoint Foundation General brz8 High Url validation failed for https://SiteURL/_vti_bin/OfficialFile.asmx during Record and document center connection configuration with exception The request failed with HTTP status 401: Unauthorized.: at System.Web.Services.Protocols.SoapHttpClientProtocol.ReadResponse(SoapClientMessage message, WebResponse response, Stream responseStream, Boolean asyncCall) at System.Web.Services.Protocols.SoapHttpClientProtocol.Invoke(String methodName, Object[] parameters) at Microsoft.SharePoint.OfficialFileSoap.GetServerInfo() at Microsoft.SharePoint.ApplicationPages.OfficialFileAdminPage.<>c__DisplayClass2.b__0() at Microsoft.SharePoint.SPSecurity.<>c__DisplayClass5.b__3() at Microsoft.SharePoint.Utilities.SecurityContext.RunAsProcess(CodeToRunElevated secureCode) at Microsoft.SharePoint.SPSecurity.RunWithElevatedPrivileges(WaitCallback secureCode, Object param) at Microsoft.SharePoint.SPSecurity.RunWithElevatedPrivileges(CodeToRunElevated secureCode) at Microsoft.SharePoint.ApplicationPages.OfficialFileAdminPage.IsValidUriToRouter(Uri uriToValidate) d5ff109d-0433-60a3-4840-479983a2a474 

The Loopbackcheck were already disabled on the box and after a troubleshooting this issue for some time on their CA box I found the Windows credentials were configured to cache on the servers (Control Panel\User Accounts\Credential Manager). We were able to configure 'Send to Connections' after removing the credentials from credential manager.