This error indicates an attempt has been made to assign ownership of an object to a user that is not entitled to this.
An example is the Folder Redirection process. By default, if the redirection target folder already exists, Folder Redirection will check to see if the user is the owner of the folder. If the user is not the owner of the folder, redirection will fail with the error: "This security ID may not be assigned as the owner of this object." Folder Redirection treats this as an error to protect against a malevolent user pre-creating folders for malicious purposes. In the case of Folder Redirection, do not pre-create the folders; let Folder Redirection create them for you.
If the folders already exist and have data in them, uncheck the "Grant the user exclusive rights to my documents" checkbox on the settings page of the Folder Redirection dialog. This tells Folder Redirection not to do the ownership check and assume the permissions are OK. If you do this, you'll need to make sure to set the permissions correctly.
Symbolic name: ERROR_INVALID_OWNER.
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