Why does updating password in credential manager work but not on network drive?

When I try to coect to my network drive (cloudspace) using the AD uname and passwd it says uname and passwd is incorrect and drive mapping fails. But when I update the same password in windows credential manager this works (network drive coects without any issues)

Can anyone help me understand why does the password update on network drive doesn't work and credential manager works? Thanks in advance.

• Source Machine: Windows 7
• Destination machine: Server 2012
• ping to drive path gives ICMP response.