Commented Issue: Trying to connect to "SQL"... - Fail [19412]

I am running into an issue with an installation on a new VM instance and VM database. When I ran the script for the first time it fails when trying to connect to the Dev (Connection Error. Check server name, port, firewall) and the second time the connection fails but different message (Exception calling “Open” with “0” argument(s): “Cannot generate SSPI context.”) . The error details are not pinpointing much or very detail so I was hoping someone has encounter the same issue and have a solution.

Both servers are in the same domain. I checked the SQL server and insured that all the accounts have access to the SQL Instance; Farm Account and Setup Account have sysadmin rights. The port 1433 is open on SQL's firewall. There is connectivity between the servers.

First Time I ran the script…
- Testing access to SQL server/instance/alias: Dev01
- Trying to connect to "Dev01"... - Fail
--------------------------------------------------------------
- Script halted!
- Connection Error. Check server name, port, firewall.
Press any key to exit...

Second Time I ran the script…
- Creating SQL alias “Dev01,1433”...
-Testing access to SQL server/instance/alias: Dev01
- Trying to connect to “Dev01”… - Fail
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- Script halted!
- Exception calling “Open” with “0” argument(s): “Cannot generate SSPI context.”
Press any key to exit…
Comments: ** Comment from web user: webguynj **

Here are my firewall settings on the SQL server


Here are the SQL Server Server and Client Protocol settings:

and


And yet even Local Telnet 1433 is failing Bizarre!!!