BTDF (BizTalk Deployment Facility) gave this error during a deploy in Visual Studio to the local machine:

Error: Domain accounts must include the domain name. Local accounts must not include a domain or computer name.

Other people mention that you are using computer or domain account when the other is needed.
In my case, my setting file had “BTS Application Users”, but my computer was set up according to the client’s instructions, and it should have been “BizTalk Application Users”.

So the solution is just to type in the correct value in the “Default Values” or “Local” column of the SettingsFileGenerator.xml file. Usually, it opens in Excel (if you have Excel installed on the machine), and change the value, then save it.