IIS Windows Authentication keeps prompting on SERVER

Question

I have inherited an ASP.net web application running on Windows server 2012 and IIS. The application works fine but there was no Test instance. When attempting to set one up I tried browsing both Live and Test instances within IIS on the server but both continually prompt for credentials as set to Windows Authentication. While a Client connection to the Live instance works fine with Windows Authentication. I checked Windows Authentication was setup within the Web Server's security role on the server manager. I have tried moving NTLM up above negotiate for these sites' Windows Authentication Providers. The only thing i found that worked was setting up a registry key for "DisableLoopbackCheck" by doing the following,

1. In Regedit go to HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Lsa
2. Right-click Lsa >> New >> DWORD Value.
3. Name this DisableLoopbackCheck, and then press ENTER.
4. Right-click DisableLoopbackCheck, and then click Modify.
5. In the Value data box, type 1, and then click OK.
6. Quit Registry Editor, and then restart the website in IIS

However, I wish to ask the following to clarify,

a) Is this the only way to achieve this? Is there a better way? b) Will this registry amendment affect the client users on their own machines?

Answer 1

Maybe you can try this way:

1. Open the internet properties on the task bar and select security.

2. Choose Internet click custom level. You’ll find user authentication at the bottom of list.

3. Change the policy to automatic logon with current username and password.