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Follow up. As soon as the invalid entry was removed from DNS the APM components worked normally.
Thank you, thank you, thank you! I had this exact problem.
This is Absolute answer for the issue of WMI we normally face.
In case we cleared all troubleshooting and imagine WMI is configured properly on target host / node, but still if WBEMTEST and SolarWinds showing test failed, the final thing we need to check is the DNS entry for the target node / host. If DNS Forward and Reverse Lookup entries proper for the node then WMI test will pass successfully.
The above answer should be marked as proper. Thanks @Mike Driskell