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Event ID: 1038 Source: MicrosoftSingleSign-on

Level
Description
User <domain>\administrator failed to configure the single sign-on server. The error returned was <error code>. Verify this account has sufficient permissions and try again.
Comments
 
In addition to the local sharepoint groups, the Single Sign-On (SSO) service needs to run in an account that could address the SQL server. I changed the SSO to the sqlSA account to test it, and it started right away.

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