After upgrading to Strategy 2021 Update 2, Standard or LDAP authentication fails when fencing is configured and enabled in Strategy Web Administration > Other Configuration.
CREATE USERFENCE "fence1" USERS "ADMINISTRATOR" NODES "node1", "node2" PROJECTS "Strategy Tutorial" PRECEDENCE 1;

In Strategy 2021 Update 2, when fencing is enabled, Strategy Web sends a
createsessionrequest with an empty password, which causes the "Login Failure".
This issue has been addressed in Strategy 2021 Update 3. Please upgrade to take advantage of this fix.
It is recommended that you disable user fencing:
Trusted, Integrated, and SAML/OIDC authentication methods are not affected by this issue and can be used as an alternative to Standard or LDAP authentication.