CLI needs to be run only from a remote server.
Do not use the CLI that is installed with the management server. The CLI on the management server is intended only for internal use by the software.
Proper command to connect to the SE managment server is:
C:\APPQ\CLI\bin\cli.bat -set -appiqcli -username <user> -password <password> -server <FQDN_Server_name>
when login is successful the output is:
CLI configuration is set; ready to issue commands.