No LDAP server for application "Delayed Authentication" found

What causes this issue?

In the configuration of LDAP servers (transaction LDAP, function "LDAP
Server"), no entry exists for LDAP application "Delayed Authentication",
or multiple entries exists without one of them being marked as
"Default".

System Response

The function of delayed authentication is unavailable for any user.

How to fix this error?

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.