You use a computer that is running Windows Vista or a later version of Windows.
You use Web Distributed Authoring and Versioning (WebDav) to access a fully qualified domain names (FQDN) site.
In this scenario, you are prompted to enter your credentials or you are denied access even though the user account that you are using has sufficient permissions to access this site.
In Windows Vista or later Windows versions, the WebClient service is used to allow Windows Explorer to interact with a WebDAV resource. The WebClient Service uses Windows HTTP Services (WinHTTP) to perform network I/O operations to the remote host.
WinHTTP sends user credentials only in response to requests that occur on a local intranet site. However, WinHTTP does not check the security zone settings in Internet Explorer to determine whether a website is in a zone that allows credentials to be sent automatically.
Note A server can be indicated for proxy bypass through either the bypass list or the proxy configuration script.
In this situation, you are either denied access or prompted to enter your credentials when the website asks for credentials. Even when this occurs, the security zone settings are ignored.
Any channel to a server whose name ends in ".microsoft.com."
Note After you configure the URL list, the credentials will automatically authenticate to the WebDAV servers, even if these servers are on the Internet.
This URL list does not affect the security zone settings. This URL list is used only for the specific purpose of forwarding the credentials to WebDAV servers. The list should be created as restrictively as possible to avoid any security issues. Also, because there is no specific deny list, the credentials are forwarded to all the servers that match this list.