As it turns out Sql Server Debugging was checked On in my project; now who did that?
The prompt for user credentials was for SQL server’s benefit because the ASPUser didn't have permissions. When the application crashed it didn’t release the debug session with SQL Server unless I stopped and started SQL server, or killed the aspnet_wp.exe worker process, or rebooted the machine which did both of the previous.
Turning off Sql Server Debugging resolved the issue; if not the problem.
Thanks again for your support!