I'd probably suggest opening a ticket with Broadcom support at this point - when you get through the java config and end up with that login failed soap response, it suggests the problem now likely lays elsewhere further down the communication chain.
My prior experience at solving those kinds of problems usually led to a couple of places:
1. Permissions for the user (which you have already checked, just listing it here as the most common reason)
2. For SaaS customers, a password management issue such as one or more of the following for the account, most of which relate to use of Single SignOn (aka SSO) and/or OnDemand Portal (aka ODP) configured environments:
- Misconfiguration of Clarity's LDAP settings, such that the ODP can authenticate users (if using that or SSO), but "non-sso" clients such as XOG/OWB/MSP can't find the user in LDAP to authenticate them
- Expired Clarity-side credentials (since XOG doesn't use the ODP, it's possible the ODP password is valid but the Clarity one XOG uses has expired). The only way to rectify that outside of support is to have a way to login to the application that displays Clarity's own username/password login screen, as it will then prompt for the password to be updated before proceeding further. Systems that don't have this screen can get a bit more 'stuck'.
- Mismatched password rules security settings in Clarity (even if a password is valid and previously worked) such as adjusting the minimum password length, the types of special characters (upper, lower, numeric, symbol) needed, etc., can prevent a XOG authentication. Changing the password for the xogadmin user in the 'Administration > Resources' menu in Clarity can remedy this, but I think Clarity still doesn't validate there if the password meets the rules which could block a user from actually logging in with it.
- Also just a mismatched password between the LDAP/ODP, and a user in Clarity that is NOT marked for "External Authentication" (so uses a password internal to Clarity), and trying to use the LDAP/ODP one. In these cases, if you want to try using the ODP/LDAP password, you can try to check the External Auth box for the user in Clarity, or else leave it unchecked but try resetting their password in Clarity and use that new one for connecting to XOG.
At all times when changing a special "xog" user password in the Clarity administration tool for resources, take care not to accidentally check the "Force password change on next login" box, as XOG can't process those and you'll be stuck as if you had an expired password again.
There may even be other reasons I've since forgotten about since my departure, but support can usually get you back on the right track again when they're able to see and work this kind of problem with you directly.