Logging in with Home Assistant Local (or is it remote?)

So, I loaded up HA as a VMware appliance under Windows 10, logged in and started configuring the system to recover from Insteon’s sudden disappearance.

When I had logged into HA and it said " Logging in with Home Assistant Local." I thought it would be a good idea to prevent remote logins, so I enabled that feature and I restarted the system.

Now when I key in my user name and password it proudly announces:
Error: Login blocked: User cannot authenticate remotely

So, is a user on the same system the virtual machine local or remote?
How do I recover from this without starting over?

Thanks