Active Directory detached cluster creation failed - MSG_AUTH_PACKAGE::KerberosAuth failed with status 2148074254

I'm having trouble creating active directory detached cluster. From log I can see there is problem with authentication, but both users are the local admin accounts with same password. Here is log file extract:

Excerpt from log file:

00001488.0000046c::2017/02/06-09:41:10.610 INFO  [ACCEPT] 0.0.0.0:~3343~: Accepted inbound connection from remote endpoint 10.32.6.201:~58602~.
00001488.00001890::2017/02/06-09:41:10.610 INFO  [SV] New real route: local (10.32.6.200:~3343~) to remote  (10.32.6.201:~58602~).
00001488.00001890::2017/02/06-09:41:10.610 INFO  [SV] Got a new incoming stream from 10.32.6.201:~58602~
00001488.00001890::2017/02/06-09:41:10.610 ERR   [SM] Sponsor: Setting package MSG_AUTH_PACKAGE::KerberosAuth failed with status 2148074254
00001488.00001890::2017/02/06-09:41:10.610 WARN  mscs::ListenerWorker::operator (): (-2146893042)' because of 'Status'
00001488.00001890::2017/02/06-09:41:13.892 INFO  [NM] Received request from client address PLSD001.
00001488.00001890::2017/02/06-09:41:13.892 WARN  [VER] Could not read version data from database for node PLSD002 (id 2).
00001488.00001890::2017/02/06-09:41:13.892 WARN  [VER] Could not read version data from database for node PLSD002 (id 2).

There is no Active Directory present and no DNS server.

Can someone tell me what am I doing wrong?

Tnx, Robert.