The reason why you are getting this error is because even though the credentials are correct, your user does not have relevant rights to basically extract the table details from MS CRM.
Can you please check with Microsoft team on the security roles granted to your user.
A quick fix will be to get administrator rights provided to your user.
Thanks Vipul for the response. I checked my Dynamics user access/role and it is Administrator. Is there a specific setting I need to look at?