As SayusiAndo guessed, the credentials were stored in Control Panel -> Credential Manager. After removing of which everything works fine.
UPDATE: Two gotchas (as @Jurri mentioned in the comments):
There may be two credentials to delete (Windows and Generic). The generic one, in my case, had "VSCredentials_" prefix.
Restart VS.
thanks for sharing your solution here, you could mark it as the answer, so it could help other community members who get the same issues.
Two gotchas: 1) There may be two credentials to delete (Windows and Generic). The generic one, in my case, had "VSCredentials_" prefix. 2) Restart VS.