Cannot telnet between windows 8.1 Update computers in a workgroup using NTLM authentiation and a Microsoft account

Question

Forum,
I have set up telnet on two computers on a non-domain network. I have a user account on both machines linked to the same Microsoft account. My user account isn't an administrator, but I have added my user as a member of the TelnetClients group on the server.
I can connect to the server, but it will not authenticate me. Only NTLM authentication is allowed. When I enable password authentication, it prompts me for my password, and I can successfully log in. I can also successfully log in when I use the
built-in Administrator account and give it the same strong password on both computers. Here is how I'm invoking telnet:
telnet {target} -l {remote username}
Has anyone gotten telnet working using a Microsoft Account, workgroup computers, and NTLM authentication only?
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Answer 1

Hi,
Please make sure that your Telnet client supports the same authentication types as the Telnet server to which you are connecting, you can view this link to configure the authentication method
Configure How the Client Authenticates to a Telnet Server
http://technet.microsoft.com/en-us/library/cc732082(v=ws.10).aspx
Error Message: Telnet Server allows NTLM authentication only
http://technet.microsoft.com/en-us/library/cc731891(v=ws.10).aspx
Yolanda Zhu
TechNet Community Support