How to connect to SQL Server Instance and SharePoint 2016 using a local AD account

Hi, I'm setting up a Lab for SharePoint 2016, I created an AD account with full permissions and the account is reachable from the SharePoint Server however once I try to login into SQL Server I'm getting an error.

The account was added into SQL Server Logins; however, I can't use it. Therefore SharePoint Server 2016 is not able to create the Configuration Database.

When i choose Windows Authentication I'm only able to login using the local Administrator account.

Error Details:

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Cannot connect to SERVER\SHAREPOINT16_CSD.

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Login failed for user 'DOMAIN\adminuser'. (Framework Microsoft SqlClient Data Provider)

For help, click: https://docs.microsoft.com/sql/relational-databases/errors-events/mssqlserver-18456-database-engine-error

Server Name: SERVER\SHAREPOINT16_CSD

Error Number: 18456

Severity: 14

State: 1

Line Number: 65536

Program Location:

at Microsoft.Data.SqlClient.SqlInternalConnection.OnError(SqlException exception, Boolean breakConnection, Action`1 wrapCloseInAction)

at Microsoft.Data.SqlClient.TdsParser.ThrowExceptionAndWarning(TdsParserStateObject stateObj, Boolean callerHasConnectionLock, Boolean asyncClose)

at Microsoft.Data.SqlClient.TdsParser.TryRun(RunBehavior runBehavior, SqlCommand cmdHandler, SqlDataReader dataStream, BulkCopySimpleResultSet bulkCopyHandler, TdsParserStateObject stateObj, Boolean& dataReady)

at Microsoft.Data.SqlClient.TdsParser.Run(RunBehavior runBehavior, SqlCommand cmdHandler, SqlDataReader dataStream, BulkCopySimpleResultSet bulkCopyHandler, TdsParserStateObject stateObj)

at Microsoft.Data.SqlClient.SqlInternalConnectionTds.CompleteLogin(Boolean enlistOK)

at Microsoft.Data.SqlClient.SqlInternalConnectionTds.AttemptOneLogin(ServerInfo serverInfo, String newPassword, SecureString newSecurePassword, Boolean ignoreSniOpenTimeout, TimeoutTimer timeout, Boolean withFailover, Boolean isFirstTransparentAttempt, Boolean disableTnir)

at Microsoft.Data.SqlClient.SqlInternalConnectionTds.LoginNoFailover(ServerInfo serverInfo, String newPassword, SecureString newSecurePassword, Boolean redirectedUserInstance, SqlConnectionString connectionOptions, SqlCredential credential, TimeoutTimer timeout)

at Microsoft.Data.SqlClient.SqlInternalConnectionTds.OpenLoginEnlist(TimeoutTimer timeout, SqlConnectionString connectionOptions, SqlCredential credential, String newPassword, SecureString newSecurePassword, Boolean redirectedUserInstance)

at Microsoft.Data.SqlClient.SqlInternalConnectionTds..ctor(DbConnectionPoolIdentity identity, SqlConnectionString connectionOptions, SqlCredential credential, Object providerInfo, String newPassword, SecureString newSecurePassword, Boolean redirectedUserInstance, SqlConnectionString userConnectionOptions, SessionData reconnectSessionData, ServerCertificateValidationCallback serverCallback, ClientCertificateRetrievalCallback clientCallback, DbConnectionPool pool, String accessToken, SqlClientOriginalNetworkAddressInfo originalNetworkAddressInfo, Boolean applyTransientFaultHandling)

at Microsoft.Data.SqlClient.SqlConnectionFactory.CreateConnection(DbConnectionOptions options, DbConnectionPoolKey poolKey, Object poolGroupProviderInfo, DbConnectionPool pool, DbConnection owningConnection, DbConnectionOptions userOptions)

at Microsoft.Data.ProviderBase.DbConnectionFactory.CreateNonPooledConnection(DbConnection owningConnection, DbConnectionPoolGroup poolGroup, DbConnectionOptions userOptions)

at Microsoft.Data.ProviderBase.DbConnectionFactory.TryGetConnection(DbConnection owningConnection, TaskCompletionSource`1 retry, DbConnectionOptions userOptions, DbConnectionInternal oldConnection, DbConnectionInternal& connection)

at Microsoft.Data.ProviderBase.DbConnectionInternal.TryOpenConnectionInternal(DbConnection outerConnection, DbConnectionFactory connectionFactory, TaskCompletionSource`1 retry, DbConnectionOptions userOptions)

at Microsoft.Data.ProviderBase.DbConnectionClosed.TryOpenConnection(DbConnection outerConnection, DbConnectionFactory connectionFactory, TaskCompletionSource`1 retry, DbConnectionOptions userOptions)

at Microsoft.Data.SqlClient.SqlConnection.TryOpenInner(TaskCompletionSource`1 retry)

at Microsoft.Data.SqlClient.SqlConnection.TryOpen(TaskCompletionSource`1 retry, SqlConnectionOverrides overrides)

at Microsoft.Data.SqlClient.SqlConnection.Open(SqlConnectionOverrides overrides)

at Microsoft.Data.SqlClient.SqlConnection.Open()

at Microsoft.SqlServer.Management.SqlStudio.Explorer.ObjectExplorerService.ValidateConnection(UIConnectionInfo ci, IServerType server)

at Microsoft.SqlServer.Management.UI.ConnectionDlg.Connector.ConnectionThreadUser()