Fixed - will be in the next release.
Changed it from a NAG dialog to being an entry in the output window. The new entry will clear the Failed Login Count when double-clicked.
The issue is that the modal NAG dialog shows up in the MIDDLE of connecting to a PLC. Rather than trying to figure out all the caveats of doing it that way, just scrap using a modal nag dialog and log an entry to the Output Window, which the user can address AFTER the project is connected to the PLC.