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I have installed IBM java agent on WAS server. After installation I am getting the message "Could not connect to controller/Invalid response from controller cannot get initialization information" in agent logs. The port is open between the app server and controller. While configuring machine agent the message observed was "Encountered error during registration. Will retry in 60 seconds". PFA agent logs and machine agent logs for reference.
What I see from your logfiles is that you get an 401 error "Unauthorized". This tells you that you have provided the wrong credentials. Looking at the top of your logfiles I see that you have provided the global account name, but for the app server agent you need the (non-global) account name, so in your case "customer1".