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NPM 10.1, Atlas and AD authentication

AD authentication looks to work with 10.1 however it seems that if the client machine you are running Atlas on is not a member of the domain and you use <DOMAIN>\<USER> or <USER>@<DOMAIN> there is not even an attempt to access the Webserver and you get an immediate error "Server is not reachable"

If a local Orion account is used and only a <USER> is specified in the Atlas login then everything is fine.

This has been tested on multiple machines that are not members of the domain with the same results.  Is this a bug?  Is it a requirement of Atlas that the client be a member of the domain?

Thanks!