Configure AAA Local Authentication Using Cisco IOS.
On R3, enable services with the global configuration aaa new-model command. Because you are implementing local authentication, use local authentication as the first method, and no authentication as the secondary method.
If you were using an authentication method with a remote server, such as TACACS+ or RADIUS, you would configure a secondary authentication method for fallback if the server is unreachable. Normally, the secondary method is the local database. In this case, if no usernames are configured in the local database, the router allows all users login access to the device.
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