The reason of the issue is that password of domain owner account is not synchronized with corresponding record in Parallels Panel database.
To fix that take the following steps:
1. Login to the server by RDP;
2. Retrieve password of the domain owner from Parallels Panel database running this command:
"%plesk_bin%"\dbclient --direct-sql --sql="select su.login, a.password from accounts a, sys_users su where a.id=su.account_id and su.login='USER1' "
login password
USER1 p@ssw0rd
where USER1 is an owner of the domain, can be taken from the error.
3. Synchronize system password with accordance of retrieved one as follow:
net user USER1 p@ssw0rd