Outbound proxy settings

I have recently upgraded to version 2017.2.3 (build 51047) (previously 2017.1.2), so I do not know if this is a recent bug.

I have my TC configured to use our corporate web proxy for all outbound connections, but I am receiving "407 authorization required" proxy errors. Our IT department is telling me that TC is not providing credentials to the proxy server when it is attempting to make a connection, and therefore the connection is refused. We have double and triple checked the configuration settings in TC and they appear to be correct. (provided below for reference)

One more additional odd issue, is that right after restarting TC, it will completely bypass the proxy and will connect to our Git repositories directly. After about five minute, the proxy settings will kick in and at that point we see the 407 errors.

The only thing that I can think of in the proxy configuration that seems fish is the fact that I have to use a AD account.

Any help resolving this is appreciated, since IT says all connections must use the proxy and later this week all direct traffic will be blocked.

Thanks,

Dave

# For HTTP protocol
## The URL or the IP address of the proxy host and the port:
teamcity.http.proxyHost=<redacted>
teamcity.http.proxyPort=8080
 
## The hosts that should be accessed without going through the proxy, usually internal hosts. Provide a list of hosts, separated by the '|' character. The wildcard '*' can be used:
 
teamcity.http.nonProxyHosts=localhost|*.mtnet
 
## For an authenticated proxy add the following properties:
 
### Authentication type
teamcity.http.proxyAuthenticationType=proxyAuthenticationType=basic
##teamcity.http.proxyAuthenticationType=proxyAuthenticationType=ntlm
 
### Login and Password for the proxy:
teamcity.http.proxyLogin=am\\nay-1
teamcity.http.proxyPassword=<redacted>
### Alternatively, instead of proxyLogin&proxyPassword use:
### teamcity.http.proxyAuthentication=formatted authentication string: the "username:password' for basic authentication; Windows NT credentials for NTLM authentication
 
 
# For HTTPS protocol
 
## The URL or the IP address of the proxy host and the port:
teamcity.https.proxyHost=<redacted>
teamcity.https.proxyPort=8080
 
## The hosts that should be accessed without going through the proxy, usually internal hosts. Provide a list of hosts, separated by the '|' character. The wildcard '*' can be used:
teamcity.https.nonProxyHosts=localhost|*.mtnet
 
## For an authenticated proxy add the following properties: ##
 
### Authentication type
teamcity.https.proxyAuthenticationType=basic
##teamcity.http.proxyAuthenticationType=proxyAuthenticationType=ntlm
 
### Login and Password for the proxy:
teamcity.https.proxyLogin=am\\nay-1
teamcity.https.proxyPassword=<redacted>
### Alternatively, instead of proxyLogin&proxyPassword use:
### teamcity.https.proxyAuthentication=formatted authentication string: the "username:password' for basic authentication; Windows NT credentials for NTLM authentication