Last few days I had noticed the issue with login which specifies the message "The information you entered was not recognized" with the user credentials. I think we need to investigate through the log files, if Anil still not able to login to application with his mailed credentials or with the email@example.com user account.
The error message at the login page "The information you entered was not recognized." appears when the credentials specified are not present in the system. I do not believe the logs will tell us anything. Further, I have a local install of 7.2 and firstname.lastname@example.org / install works fine out of the box.
I don't think Anil has tried this, so I suspect that will work once attempted.
If it does not work, then I have a feeling this is a VM from Pega Academy. In which case, Pega Academy should be contacted for assistance: SelfStudySupport@pega.com