The KB article explains that this error requires the account be fixed in AD (I guess re-created since it does not specify what it doesn't like about it). The logical problem here is that the user can login just fine directly from the server. If the problem is with the AD account, shouldn't they not be able to login from anywhere?
Edit: Slight correction. When logged into the server it was under the specific AD account having the problem. If logged into Windows as any other account from any station the 1201 error is received. They are only able to Login when they are logged into Windows as the correct account. It still does not appear to be logically an issue with the specific account, since it works in one case and not another.
https://support.laserfiche.com/kb/print/1012431