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Event ID: 12321 Source: Microsoft-Windows-Security-Licensing-SLC

Token Based Actvation failed.

According to ME2020644, this event will occur when the Token Issuence License is not installled inside Windows or the certificates on the Smartcard are not present and activation is attempted. See the article for the recommended resolution.
According to a MS support engineer, this error message is innocuous and it can be ignored.

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