Domain service account fails to login locally before successfully logging into the Domain Controller

We are currently seeing an issue in our environment where domain service accounts are attempting to validate against a machine locally. These attempts fail, generating Event 4625 with Sub Status 0xc0000064 (username not found). Once these fail, the accounts attempt to authenticate against the domain controller where they succeed generating Event 4624. All servers are running Windows 2008.

This is causing issues with our alerting system as it is seeing the local authentication fail regularly and flagging this as potentially malicious behaviour.

Is it expected behaviour for a service account to attempt to authenticate locally before failing back to the domain controller or could there be a misconfiguration somewhere? Sample of events 4624 and 4625 below.

Failed authentication attempt on local machine

07/09/2018 02:37:06 PM
LogName=Security
SourceName=Microsoft Windows security auditing.
EventCode=4625
EventType=0
Type=Information
ComputerName=LOCALSERVER01
TaskCategory=Logon
OpCode=Info
RecordNumber=23531011
Keywords=Audit Failure
Message=An account failed to log on.

Subject:
    Security ID:        DOMAIN\serviceaccount
    Account Name:       serviceaccount
    Account Domain:     DOMAIN
    Logon ID:           0xd12e45c7

Logon Type:         3

Account For Which Logon Failed:
    Security ID:        NULL SID
    Account Name:       
    Account Domain:     

Failure Information:
    Failure Reason:     Unknown user name or bad password.
    Status:         0xc000006d
    Sub Status:     0xc0000064

Process Information:
    Caller Process ID:  0x7d8
    Caller Process Name:    C:\Program Files\Microsoft SQL Server\MSSQL10_50.MSSQLSERVER\MSSQL\Binn\sqlservr.exe

Network Information:
    Workstation Name:   LOCALSERVER01
    Source Network Address: -
    Source Port:        -

Detailed Authentication Information:
    Logon Process:      Authz   
    Authentication Package: Kerberos
    Transited Services: -
    Package Name (NTLM only):   -
    Key Length:     0

This event is generated when a logon request fails. It is generated on the computer where access was attempted.

The Subject fields indicate the account on the local system which requested the logon. This is most commonly a service such as the Server service, or a local process such as Winlogon.exe or Services.exe.

The Logon Type field indicates the kind of logon that was requested. The most common types are 2 (interactive) and 3 (network).

The Process Information fields indicate which account and process on the system requested the logon.

The Network Information fields indicate where a remote logon request originated. Workstation name is not always available and may be left blank in some cases.

The authentication information fields provide detailed information about this specific logon request.
    - Transited services indicate which intermediate services have participated in this logon request.
    - Package name indicates which sub-protocol was used among the NTLM protocols.
    - Key length indicates the length of the generated session key. This will be 0 if no session key was requested.

Successful authentication attempt against domain controller.

07/09/2018 02:37:10 PM
LogName=Security
SourceName=Microsoft Windows security auditing.
EventCode=4624
EventType=0
Type=Information
ComputerName=DOMAINCONTROLLER01
TaskCategory=Logon
OpCode=Info
RecordNumber=10779583496
Keywords=Audit Success
Message=An account was successfully logged on.

Subject:
    Security ID:        NULL SID
    Account Name:       -
    Account Domain:     -
    Logon ID:       0x0

Logon Type:         3

Impersonation Level:        Impersonation

New Logon:
    Security ID:        DOMAIN\serviceaccount
    Account Name:       serviceaccount
    Account Domain:     DOMAIN
    Logon ID:       0xd12e45c7
    Logon GUID:     {00000000-0000-0000-0000-000000000000}

Process Information:
    Process ID:     0x0
    Process Name:       -

Network Information:
    Workstation Name:   -
    Source Network Address: LOCALSERVER01 IP ADDRESS
    Source Port:        64871

Detailed Authentication Information:
    Logon Process:      Kerberos
    Authentication Package: Kerberos
    Transited Services: -
    Package Name (NTLM only):   -
    Key Length:     0

This event is generated when a logon session is created. It is generated on the computer that was accessed.

The subject fields indicate the account on the local system which requested the logon. This is most commonly a service such as the Server service, or a local process such as Winlogon.exe or Services.exe.

The logon type field indicates the kind of logon that occurred. The most common types are 2 (interactive) and 3 (network).

The New Logon fields indicate the account for whom the new logon was created, i.e. the account that was logged on.

The network fields indicate where a remote logon request originated. Workstation name is not always available and may be left blank in some cases.

The impersonation level field indicates the extent to which a process in the logon session can impersonate.

The authentication information fields provide detailed information about this specific logon request.
    - Logon GUID is a unique identifier that can be used to correlate this event with a KDC event.
    - Transited services indicate which intermediate services have participated in this logon request.
    - Package name indicates which sub-protocol was used among the NTLM protocols.
    - Key length indicates the length of the generated session key. This will be 0 if no session key was requested.