"Failed to create a session; confirm that the user has the proper privileges to log on to Microsoft Dynamics"
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In order to resolve, please check two following things:
1. Open the partitionadministration form to see how many Partitions you have:
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In my case two partitions.
2. Now check number of records in USERINFO table for ‘Admin’, ‘Guest’
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I found one set of records for initial partition only.
Issue:
We don’t have equal number set of admin and guest users for both partitions.
Resolution:
Delete the partition for whom users are not available from Partitions Table (Using SQL SERVER Management Studio) and then create the same partition with AX Client (System Administration>Setup>Partitions). This will create those users.

In order to resolve, please check two following things:
1. Open the partitionadministration form to see how many Partitions you have:

In my case two partitions.
2. Now check number of records in USERINFO table for ‘Admin’, ‘Guest’

I found one set of records for initial partition only.
Issue:
We don’t have equal number set of admin and guest users for both partitions.
Resolution:
Delete the partition for whom users are not available from Partitions Table (Using SQL SERVER Management Studio) and then create the same partition with AX Client (System Administration>Setup>Partitions). This will create those users.
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