Error "Object username is not valid and cannot be used" is thrown when you try to filter published items

Symptoms

Users from trusted domains can't be used for application filtering, error Object username is not valid and cannot be used is thrown:

Cause

The computer where RAS Console is running has issues connecting to the trusted domain.
Please check its System log in Event viewer for events having ID 5516 or others:

Resolution

Please resolve the underlying issues preventing the computer from connecting to the domain.