How to fix COM outproc server initializing error 0x80004015?

I have a COM outproc server written in ATL that registers itself using

_Module.RegisterClassObjects(CLSCTX_LOCAL_SERVER, REGCLS_SINGLEUSE)

and it results in an HRESULT error code 0x80004015 (which means CO_E_WRONG_SERVER_IDENTITY). What causes this error code, and how can I work around this error?

Do you have any specific DCOM permissions set on the server? Alternatively, check the identity of the caller that causes the server process to be launched against the default DCOM permissions. It might be that the caller is service running under particular account and the process is launched as Interactive User.

Here's an article with more info that can help you figure out the problem.