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Experiencing the below error while trying to create a project in SAP Business application studio from a template by connecting to a system and selecting a desired destination.

Authentication incorrect. Please check the SAP BTP destination authentication configuration.


This is issue is getting even though the correct credentials have been maintained for authentication-type: Basic.

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Product and Topic Expert
Product and Topic Expert
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There was a known outage tied to some maintenance.

It was documented under 3800266 - BAS Cannot connect to server (https://me.sap.com/notes/3800266).
Most of the regions being updated to get the fix automatically.  So most likely if your region got the fix, the next time you logon it will work.  A few customers closed their cases with SAP as they received the fixes.