ADRMS Error - The operation being requested was not performed because the user has not been authenticated

I was recently helping a customer in ADRMS design and deployment where we faced an issue with ADRMS URL. When you configure your ADRMS and tries to connect your MS Office application, you get the following error:

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You can verify your authentication settings however they might be correct and it is just that your ADRMS URL has not been added to the Intranet zone of Internet Explorer settings. You can add the URL and you will be able to connect to ADRMS and get the templates successfully.

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