You have no authorization to administer passwords remotely for user &1

What causes this issue?

The RFC service using by the Central User Administration has no
authorization in the daughter system &V2& (RFC destination) to
administrate the password for the user &V1&.
The authorization object checked was S_USER_GRP for the activity 05.

System Response

For this reason, the system cannot read the user, including the
password hash value. None of the selected users were transferred to the
Central User Administration.

How to fix this error?

Extend the authorization of the service user of the Central User
Administration in the target system to include the following
authorization values in the authorization object S_USER_GRP:
CLASS = '*'
ACTVT = '05'

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.