If the username and password are manually entered into a job configuration page then the plugin will properly authorize with TFS and jobs will complete on both Master and slaves.

If the username and password are left blank to use the service credentials of the Jenkins Service, the all operations including the source code download will complete, but the call to tf.exe history will fail with an unauthorized exception. The issue may be similar to JENKINS-22046 but unsure.

Inability to use service credentials is a problem because it rules out the use of Managed Service accounts, and requires lots of jobs to be updated if the credentials change (another reason to use Managed Service Accounts).

FATAL: Access denied connecting to TFS server <servername> (authenticating as )
com.microsoft.tfs.core.exceptions.TFSUnauthorizedException: Access denied connecting to TFS server http://pmtfs3:8080/ (authenticating as )
at com.microsoft.tfs.core.exceptions.mappers.TECoreExceptionMapper.map(TECoreExceptionMapper.java:75)
at com.microsoft.tfs.core.exceptions.mappers.LocationExceptionMapper.map(LocationExceptionMapper.java:32)
at com.microsoft.tfs.core.clients.framework.location.internal.LocationWebServiceProxy.connect(LocationWebServiceProxy.java:76)
at com.microsoft.tfs.core.clients.framework.location.LocationService.connect(LocationService.java:754)
at com.microsoft.tfs.core.clients.framework.location.LocationService.ensureConnected(LocationService.java:884)
at com.microsoft.tfs.core.clients.framework.location.LocationService.getInstanceID(LocationService.java:943)
at com.microsoft.tfs.core.TFSConnection.getInstanceID(TFSConnection.java:533)
at com.microsoft.tfs.core.clients.webservices.IdentityManagementService.<init>(IdentityManagementService.java:85)
at hudson.plugins.tfs.model.Project.getVCCHistory(Project.java:84)
at hudson.plugins.tfs.model.Project.getDetailedHistory(Project.java:128)
at hudson.plugins.tfs.actions.CheckoutAction.checkout(CheckoutAction.java:56)
at hudson.plugins.tfs.TeamFoundationServerScm.checkout(TeamFoundationServerScm.java:176)
at hudson.model.AbstractProject.checkout(AbstractProject.java:1270)
at hudson.model.AbstractBuild$AbstractBuildExecution.defaultCheckout(AbstractBuild.java:609)
at jenkins.scm.SCMCheckoutStrategy.checkout(SCMCheckoutStrategy.java:86)
at hudson.model.AbstractBuild$AbstractBuildExecution.run(AbstractBuild.java:531)
at hudson.model.Run.execute(Run.java:1751)
at hudson.model.FreeStyleBuild.run(FreeStyleBuild.java:43)
at hudson.model.ResourceController.execute(ResourceController.java:89)
at hudson.model.Executor.run(Executor.java:240)
Caused by: com.microsoft.tfs.core.ws.runtime.exceptions.UnauthorizedException: Authorization failure connecting to 'http://pmtfs3:8080/tfs/DefaultCollection/Services/v3.0/LocationService.asmx' (authenticating as )
at com.microsoft.tfs.core.ws.runtime.client.SOAPService.executeSOAPRequestInternal(SOAPService.java:709)
at com.microsoft.tfs.core.ws.runtime.client.SOAPService.executeSOAPRequest(SOAPService.java:473)
at ms.ws._LocationWebServiceSoap12Service.connect(_LocationWebServiceSoap12Service.java:384)
at com.microsoft.tfs.core.clients.framework.location.internal.LocationWebServiceProxy.connect(LocationWebServiceProxy.java:70)
... 17 more
Finished: FAILURE