From the knowledge base:
S-029063 Creating a new user in Enterprise PDM vault using Windows login type results in a "... does not exist on archive server" error. Why?
This can be seen when Enterprise PDM is using Windows® authentication and the user is being added to the vault by entering their username instead of selecting from a listing of available users.
This error is raised because the user being added is not in the Windows login groups listed under the archive server configuration tool.
To remedy this issue, do one of the following in the Archive Configuration tool:
For default login type: Tools -> default settings -> login -> windows login -> settings.
For vault specific (or repliacted) login type: Expand my computer -> right-click vault -> settings -> login -> windows login.
a. Add the user directly to one of the groups already listed in the 'select users and groups' dialog.
b. Add a local or domain group that this user is a member of to the 'select users and groups' dialog
c. Add the user directly to the list of users and groups in the 'select users and groups' dialog.
A workaround is to select 'list users' instead of adding the username directly. This will show all of the available users that have not already been added to the vault.