Failed to create SQL login and grant SQL privilege configurations on the Management database server

I appreciate your support to resolve my following weird issue. I tried to install and configure BizTalk 2016 Trial version on a simple multi servers environment. I have:

First Server: BizTalk 2016 Server Second Server: SQL Server 2016 developers edition My current problem is that, once I tried to configure the BizTalk Runtime on the first server, I face the following issue:

Feature: [BizTalk Runtime] Failed to configure with error

message [Failed to create SQL login and grant SQL privilege configurations on

the Management database server "xxx"/ database name "BizTalkMgmtDb"

while creating BizTalk Host "BizTalkServerApplication".

Therefore, I tried to install and configure the BizTalk on the second server that has the SQL server, then add the first server to the group.

I successfully installed and configured the BizTalk on the second SQL Server. However, once I tried to configure the BizTalk runtime on the first server or add a new host to the hosts' list from the second server, I face the same problem. Here are the error details that is pop up when I try to add a new host:

and here is the error log when I try to configure the BizTalk run-time from the first server:

0416 Info Configuration Framework]Entering function IsAdminRequiredForConfig.
0416 Info Configuration Framework]Leaving function IsAdminRequiredForConfig.
0416 Info Configuration Framework]Entering function UseSplashScreen.
0416 Info Configuration Framework]Leaving function UseSplashScreen.
0713 Info Configuration Framework]Created IConfig2 object for feature: SSOServer,Engine ProgID: MSEBiz.SSOServerCfg.
Info SSOServerCfg] (ssoconfigobj2.cpp:1859) CSSOServerCfg::AdviseCommon
Info SSOServerCfg] (ssoconfigobj2.cpp:105) CSSOServerCfg::InitializeOneTime
Info SSOServerCfg] (ssoconfigobj2.cpp:118) x64
Info SSOServerCfg] (ssoconfigobj2.cpp:124) Newer Version than Win2K
Info SSOServerCfg] (ssoconfigobj2.cpp:164) Computer name: SESB001
Info SSOServerCfg] (ssoconfigobj2.cpp:172) Current user name: My\BizTalkServiceAdmin
Info SSOServerCfg] (ssoconfigobj2.cpp:5493) CSSOServerCfg::CheckDC
Info SSOServerCfg] (ssoconfigobj2.cpp:5515) This computer is not a domain controller.
Info SSOServerCfg] (ssoconfigobj2.cpp:5917) CSSOServerCfg::GetCluster
Info SSOServerCfg] (ssoconfigobj2.cpp:5960) This computer is not clustered.
Info SSOServerCfg] (ssoconfigobj2.cpp:1812) CSSOServerCfg::LoadProductId
Info SSOServerCfg] (ssoconfigobj2.cpp:1930) SSOServer,Engine
Info SSOServerCfg] (ssoconfigobj2.cpp:1795) CSSOServerCfg::Advise: 0x00000000 (0)
Info Configuration Framework]Created IConfig2 object for feature: WMI ProgID: MSEBiz.BtsCfg.
0869 Info RulesEngine] Entering function Advise
0869 Info RulesEngine] Leaving function Advise
0884 Info Configuration Framework]Created IConfig2 object for feature: MOT ProgID: MSEBiz.BAMConfigWizExt.
0900  Warning ConfigHelper] The serivce: MSSQLServerOLAPService does not exist.
0900  Info ConfigHelper] SQL Analysis service is not running on this machine.
0916 Info Configuration Framework]Created IConfig2 object for feature: BAMTools ProgID: MSEBiz.BAMConfigWizExt.
0916  Warning ConfigHelper] The serivce: MSSQLServerOLAPService does not exist.
0916  Info ConfigHelper] SQL Analysis service is not running on this machine.
0931  Warning ConfigHelper] The serivce: MSSQLServerOLAPService does not exist.
0931  Info ConfigHelper] SQL Analysis service is not running on this machine.
0963 Info Configuration Framework]Entering function LoadXMLfromModules()
Info ConfigHelper] Checking if service exists.
Info ConfigHelper] Attempting to open service manager.
Info ConfigHelper] Attempting to lock service database.
Info ConfigHelper] NT Service: ENTSSO already exists
Info SSOServerCfg] (ssoconfigobj2.cpp:431) SSO is configured
Info SSOServerCfg] (ssoconfigobj2.cpp:438) SQL Server: SSQL001
Info SSOServerCfg] (ssoconfigobj2.cpp:443) SSO database: SSODB
Info SSOServerCfg] (ssoconfigobj2.cpp:7258) CSSOServerCfg::IsSecretServer
Info SSOServerCfg] (ssoconfigobj2.cpp:7274) ISSOConfigOM::GetServerStatus
Info SSOServerCfg] (ssoconfigobj2.cpp:455) IConfigHelper::GetServiceAccount
Info ConfigHelper] Attempting to open service manager.
Info ConfigHelper] Attempting to lock service database.
[0244  Warning ConfigHelper] The serivce: MSSQLServerOLAPService does not exist.
[0244  Info ConfigHelper] SQL Analysis service is not running on this machine.
[0244  Info ConfigHelper]   Feature: Engine is installed
[0291  Warning ConfigHelper] The serivce: MSSQLServerOLAPService does not exist.
[0291  Info ConfigHelper] SQL Analysis service is not running on this machine.
[0494 Info RulesEngine] Previously configured database is server = 'SSQL001', database = 'BizTalkRuleEngineDb'
[0494 Info RulesEngine] Service 'RuleEngineUpdateService'  is already installed, status = Running
[0510  Info BAMConfigWizExt] Building feature XML for: BAMTools
[0510  Info ConfigHelper]   Feature: WMI is installed
5256 [Info] BAMTools Updates server SSQL001.
5256 [Info] BAMTools Splitting the server name: SSQL001
5256 [Info] BAMTools Split the server name SSQL001 into server SSQL001 and port .
5256 [Info] BAMTools Updated server name SSQL001 to SSQL001
5412 [Info] CfgExtHelper Checking the connection to the BizTalk Management Database: BizTalkMgmtDb on server SSQL001
6037 [Info] CfgExtHelper Connecting to the BAM Primary Import Table Database
6037 [Info] CfgExtHelper The BAM Primary Import Database found from the BizTalk Management Database BizTalkMgmtDb on server SSQL001 is not compatible.
6037 [Info] CfgExtHelper No BizTalk Management Database or BAM Primary Import Database given
[0603  Info ConfigHelper]   Feature: OLAPNS is installed
6037 [Info] BAMTools Determining version of Microsoft SQL Server installed on server .
[0417  Error BAMConfigWizExt] d:\bt\52584\private\source\monitoring\configuration\extention\helpers.h(2068): FAILED hr = 80004005
[0433  Info ConfigHelper]   Feature: WMI is installed
4334 [Info] BAMTools Updates server SSQL001.
4334 [Info] BAMTools Splitting the server name: SSQL001
4334 [Info] BAMTools Split the server name SSQL001 into server SSQL001 and port .
4334 [Info] BAMTools Updated server name SSQL001 to SSQL001
4334 [Info] CfgExtHelper Checking the connection to the BizTalk Management Database: BizTalkMgmtDb on server SSQL001
4491 [Info] CfgExtHelper Connecting to the BAM Primary Import Table Database
4491 [Info] CfgExtHelper The BAM Primary Import Database found from the BizTalk Management Database BizTalkMgmtDb on server SSQL001 is not compatible.
4491 [Info] CfgExtHelper No BizTalk Management Database or BAM Primary Import Database given
4491 [Info] BAMPortal Determining default BAM Portal Users Group.
5116 [Info] BAMPortal Got BAM Portal Users Group Everyone
6991 [Info] BAMPortal Determining version of IIS.
6991 [Info] BAMPortal Opening local registry key: SOFTWARE\Microsoft\InetStp
6991 [Info] BAMPortal Getting registry value: MajorVersion
6991 [Info] BAMPortal IIS version is: 10
[0699  Info BAMConfigWizExt] Leaving function: CBAMConfigWizExt::GetFeatureConfig
[0699 Info EDIAS2Config] Entering function EDIAS2Config::GetFeatureConfig
[0746 Info EDIAS2Config] Leaving function EDIAS2Config::GetFeatureConfig
[230 Info Configuration Framework]Created user interface control for BizTalk EDI/AS2 Runtime.
[:0853  Info ConfigHelper] My\STG  BizTalk Application Users is not a local entity.
[:0884  Info ConfigHelper] No mapping between account names and security IDs was done.
[:0884  Info ConfigHelper] BizTalk Isolated Host Users is a local entity.
[:0947  Info ConfigHelper] No mapping between account names and security IDs was done.
[:0947  Info ConfigHelper] BizTalk Isolated Host Users is a local entity.
[:0947  Info ConfigHelper] My\STG BizTalk Isolated Host Users is not a local entity.
[119  Info ConfigHelper] My\STG  BizTalk Application Users is not a local entity.
[150  Info ConfigHelper] No mapping between account names and security IDs was done.
[150  Info ConfigHelper] BizTalk Isolated Host Users is a local entity.
[213  Info ConfigHelper] No mapping between account names and security IDs was done.
[213  Info ConfigHelper] My\STG BizTalk Isolated Host Users is not a local entity.
[384  Info ConfigHelper] My\STG  BizTalk Application Users is not a local entity.
[400  Info ConfigHelper] No mapping between account names and security IDs was done.
[400  Info ConfigHelper] BizTalk Isolated Host Users is a local entity.
[463  Info ConfigHelper] No mapping between account names and security IDs was done.
[463  Info ConfigHelper] BizTalk Isolated Host Users is a local entity.
[463  Info ConfigHelper] My\STG BizTalk Isolated Host Users is not a local entity.
[494  Info ConfigHelper]  is not a local entity.
[494  Error ConfigHelper] d:\bt\52584\private\source\common\configwizard\confighelper\service.cpp(729): FAILED hr = 80070421
[494  Warning ConfigHelper] The account name is invalid or does not exist, or the password is invalid for the account name specified.
[494  Warning ConfigHelper]     Failed to validate service credentials for account: %1
[494  Info BtsCfg] Check Your NT Account Specification
[509  Error ConfigHelper] d:\bt\52584\private\source\common\configwizard\confighelper\service.cpp(729): FAILED hr = 80070421
[509  Warning ConfigHelper] The account name is invalid or does not exist, or the password is invalid for the account name specified.
[509  Warning ConfigHelper]     Failed to validate service credentials for account: %1
[509  Info BtsCfg] Check Your NT Account Specification[
3:0978  Info ConfigHelper] No mapping between account names and security IDs was done.
3:0978  Info ConfigHelper] BizTalk Isolated Host Users is a local entity.
4:0041  Info ConfigHelper] No mapping between account names and security IDs was done.
4:0119  Info ConfigHelper] BizTalk Isolated Host Users is a local entity.
4:0119  Info ConfigHelper] My\STG BizTalk Isolated Host Users is not a local entity.
5:0556  Info ConfigHelper] No mapping between account names and security IDs was done.
5:0556  Info ConfigHelper] BizTalk Isolated Host Users is a local entity.
9:0208  Info ConfigHelper]  Validated service credentials for account: My\BizTalkServiceAdmin
9:0709  Info ConfigHelper] BizTalk Application Users is not an valid domain group.
00:42:10:0850  Info ConfigHelper]   Validated service credentials for account: My\BizTalkServiceAdmin
00:42:10:0881  Info ConfigHelper] BizTalk Application Users is not an valid domain group.
00:42:11:0006  Info ConfigHelper] No mapping between account names and security IDs was done.
00:42:11:0006  Info ConfigHelper] BizTalk Isolated Host Users is a local entity.
00:42:27:0410  Info ConfigHelper]   Validated service credentials for account: My\BizTalkServiceAdmin
00:42:27:0425  Info ConfigHelper] BizTalk Isolated Host Users is not an valid domain group.
0581  Info ConfigHelper]    Validated service credentials for account: My\BizTalkServiceAdmin
0613  Info ConfigHelper] BizTalk Isolated Host Users is not an valid domain group.
0738  Info ConfigHelper] No mapping between account names and security IDs was done.
0738  Info ConfigHelper] BizTalk Isolated Host Users is a local entity.
00:42:57:0250  Info BtsCfg]     Validating feature: Engine,BTSCfg
00:42:57:0297  Info ConfigHelper] My\STG  BizTalk Application Users is a valid domain group.
00:42:57:0359  Info BtsCfg]     Validating feature: Engine,BTSCfg
00:42:57:0375  Info ConfigHelper] BizTalkServiceAdmin is a local entity.
00:42:57:0406  Info ConfigHelper]   Validated service credentials for account: My\BizTalkServiceAdmin
00:42:57:0437  Info ConfigHelper] My\STG  BizTalk Application Users is a valid domain group.
00:42:57:0453  Info ConfigHelper] My\BizTalkServiceAdmin is a member of Group: My\STG  BizTalk Application Users.
00:42:57:0453  Info BtsCfg] Leaving function: CBtsCfg::ValidateFeature
00:42:57:0453  Info BtsCfg] Entering function: CBtsCfg::ValidateFeature
00:42:57:0469  Info BtsCfg]     Validating feature: Engine,BTSCfg
00:42:57:0484  Info ConfigHelper] BizTalkServiceAdmin is a local entity.
00:42:57:0515  Info ConfigHelper]   Validated service credentials for account: My\BizTalkServiceAdmin
00:42:57:0547  Info ConfigHelper] BizTalk Isolated Host Users is not an valid domain group.
00:42:57:0547  Info BtsCfg] Leaving function: CBtsCfg::ValidateFeature
6:0596  Info BtsCfg] Entering function: CBtsCfg::ValidateFeature
6:0611  Info BtsCfg]    Validating feature: Engine,BTSCfg
6:0658  Info ConfigHelper] My\STG BizTalk Isolated Host Users is a valid domain group.
6:0783  Info ConfigHelper]  Validated service credentials for account: My\BizTalkServiceAdmin
6:0799  Info ConfigHelper] My\STG  BizTalk Application Users is a valid domain group.
6:0815  Info ConfigHelper] My\BizTalkServiceAdmin is a member of Group: My\STG  BizTalk Application Users.
6:0861  Info ConfigHelper]  Validated service credentials for account: My\BizTalkServiceAdmin
6:0892  Info ConfigHelper] My\BizTalkServiceAdmin is a member of Group: My\STG BizTalk Isolated Host Users.
12:0187  Info ConfigHelper]     Validated service credentials for account: My\BizTalkServiceAdmin
12:0203  Info ConfigHelper] My\STG  BizTalk Application Users is a valid domain group.
12:0203  Info ConfigHelper] My\BizTalkServiceAdmin is a member of Group: My\STG  BizTalk Application Users.
12:0250  Info ConfigHelper]     Validated service credentials for account: My\BizTalkServiceAdmin
12:0281  Info ConfigHelper] My\STG BizTalk Isolated Host Users is a valid domain group.
12:0281  Info ConfigHelper] My\BizTalkServiceAdmin is a member of Group: My\STG BizTalk Isolated Host Users.
[12:43:13 AM Info ConfigHelper] Checking if service exists.
[12:43:13 AM Info ConfigHelper] Attempting to open service manager.
[12:43:13 AM Info ConfigHelper] Attempting to lock service database.
[12:43:13 AM Info ConfigHelper] NT Service: ENTSSO already exists
[12:43:13 AM Info SSOServerCfg] (ssoconfigobj2.cpp:904) --- Reuse ---
13:0906  Info ConfigHelper] My\STG BizTalk Isolated Host Users is a valid domain group.
13:0984  Info ConfigHelper] My\STG  BizTalk Application Users is a valid domain group.
14:0156  Info ConfigHelper] BizTalkServiceAdmin is a local entity.
14:0187  Info ConfigHelper]     Validated service credentials for account: My\BizTalkServiceAdmin
14:0203  Info ConfigHelper] My\STG  BizTalk Application Users is a valid domain group.
14:0203  Info ConfigHelper] My\BizTalkServiceAdmin is a member of Group: My\STG  BizTalk Application Users.
14:0203  Info ConfigHelper] BizTalkServiceAdmin is a local entity.
14:0234  Info ConfigHelper]     Validated service credentials for account: My\BizTalkServiceAdmin
14:0265  Info ConfigHelper] My\STG BizTalk Isolated Host Users is a valid domain group.
14:0265  Info ConfigHelper] My\BizTalkServiceAdmin is a member of Group: My\STG BizTalk Isolated Host Users.
14:0265  Info BtsCfg] Leaving function: CBtsCfg::ValidateFeature
14:0265 Info RulesEngine] Entering function ValidateFeature
14:0328 Info RulesEngine] Checking specified Rules database (server = 'SSQL001', database = 'BizTalkRuleEngineDb')
14:0359 Info RulesEngine] The specified Rules Engine database is compatible with the current version.
9:0768 Info Configuration Framework]Configuring feature: Engine,BTSCfg
19:0768  Info BtsCfg] Entering function: CBtsCfg::ConfigureFeature
19:0768  Info BtsCfg]   Configuring feature: Engine,BTSCfg
19:0784  Info BtsCfg] Entering function: CWMI::Connect
19:0784  Info BtsCfg] WMI is already connected
19:0784  Info BtsCfg] Leaving function: CWMI::Connect
19:0909  Info BtsCfg] Entering function: CWMI::CreateHost
42:0893  Error BtsCfg] Failed to create SQL login and grant SQL privilege configurations on the Management database server "SSQL001" / database name "BizTalkMgmtDb" while creating BizTalk Host "BizTalkServerApplication2".
Connection failure
42:0893  Error BtsCfg] d:\bt\52584\private\source\setup\btscfg\btscfg.cpp(2213): FAILED hr = 80004005
42:0893  Info BtsCfg] Entering function: CBtsCfg::UnConfigureFeature
42:0893  Info BtsCfg]   Unconfiguring feature: Engine,BTSCfg
42:0893  Info BtsCfg] Entering function: CBtsCfg::UnregisterWSSAdapterPerfCounters
42:0893  Info BtsCfg] Entering function: CBtsCfg::WSSAdapterPerfCountersRegistrationHelper
42:0893  Info ConfigHelper]     Retrieved INSTALLDIR: C:\Program Files (x86)\Microsoft BizTalk Server 2016\
42:0893  Info BtsCfg] C:\Program Files (x86)\Microsoft BizTalk Server 2016\Microsoft.BizTalk.KwTpm.WssAdapter.Runtime.dll
42:0987  Warning BtsCfg] System.Configuration.Install.InstallException: An exception occurred while uninstalling. This exception will be ignored and the uninstall will continue. However, the application might not be fully uninstalled after the uninstall is complete. ---> System.InvalidOperationException: Cannot delete Performance Category because this category is not registered or is a system category.
   at System.Diagnostics.PerformanceCounterCategory.Delete(String categoryName)
   at System.Diagnostics.PerformanceCounterInstaller.Uninstall(IDictionary savedState)
   at System.Configuration.Install.Installer.Uninstall(IDictionary savedState)
   --- End of inner exception stack trace ---
   at System.Configuration.Install.Installer.Uninstall(IDictionary savedState)
   at System.Configuration.Install.AssemblyInstaller.Uninstall(IDictionary savedState)
   at Microsoft.BizTalk.KwTpm.WssAdapter.PerfAssemblyInstaller.UninstallAssemblyHelper(String assemblyPath)
   at Microsoft.BizTalk.KwTpm.WssAdapter.PerfAssemblyInstaller.Microsoft.BizTalk.KwTpm.WssAdapter.IPerfAssemblyInstaller.UninstallAssembly(String assemblyPath, Boolean& bSuccess, String& errorText)
42:0987  Info BtsCfg] Leaving function: CBtsCfg::WSSAdapterPerfCountersRegistrationHelper
42:0987  Info BtsCfg] Leaving function: CBtsCfg::UnegisterWSSAdapterPerfCounters
42:0987  Info BtsCfg] Leaving function: CBtsCfg::UnConfigureFeature
42:0987  Info BtsCfg] Leaving function: CBtsCfg::ConfigureFeature
42:0987 Warning Configuration Framework]Feature failed to configure: Engine,BTSCfg.
43:0034 Info Configuration Framework]Configuring feature: MOT
43:0034 Warning Configuration Framework]Feature is skipped due to dependent feature (BizTalk Runtime) failed to configure correctly.
43:0049 Error Configuration Framework]Configuration Telemetry Data Collection/Upload failed with error:Exception has been thrown by the target of an invocation.
43:0049 Info Configuration Framework]Configuration Summaries:
43:0049 Error Configuration Framework]Feature: [BizTalk Runtime] Failed to configure with error message [Failed to create SQL login and grant SQL privilege configurations on the Management database server "SSQL001" / database name "BizTalkMgmtDb" while creating BizTalk Host "BizTalkServerApplication2".
Connection failure]
43:0049 Error Configuration Framework]Feature: [] Failed to configure with error message [Feature is skipped due to dependent feature (BizTalk Runtime) failed to configure correctly.]
43:0049 Error Configuration Framework]Feature: [BizTalk EDI/AS2 Runtime] Failed to configure with error message [Feature is skipped due to dependent feature (BizTalk Runtime) failed to configure correctly.]
43:0049 Info Configuration Framework]   Feature: SSOServer,Engine   Configuration Enabled: yes  Sub UI: no  Configured: yes
43:0049 Info Configuration Framework]   Feature: SSOServer,Engine   Configuration Enabled: no   Sub UI: yes Configured: yes
43:0049 Info Configuration Framework]   Feature: WMI    Configuration Enabled: yes  Sub UI: no  Configured: yes
43:0049 Info Configuration Framework]   Feature: Engine,BTSCfg  Configuration Enabled: yes  Sub UI: no  Configured: no
43:0049 Info Configuration Framework]   Feature: RulesEngine    Configuration Enabled: yes  Sub UI: no  Configured: yes
43:0049 Info Configuration Framework]   Feature: MOT    Configuration Enabled: yes  Sub UI: no  Configured: no
43:0049 Info Configuration Framework]   Feature: BAMTools   Configuration Enabled: no   Sub UI: no  Configured: no
43:0049 Info Configuration Framework]   Feature: BAMTools   Configuration Enabled: no   Sub UI: yes Configured: no
43:0049 Info Configuration Framework]   Feature: BAMPortal  Configuration Enabled: no   Sub UI: no  Configured: no
43:0049 Info Configuration Framework]   Feature: MsEDIAS2   Configuration Enabled: no   Sub UI: no  Configured: no
43:0049 Info Configuration Framework]Leaving function ConfigureFeatures().
43:0065 Info Configuration Framework]Entering function WizardStep_NextStepChanged.
43:0065 Info Configuration Framework]Entering function ConfigWizardResult_Load.
43:0096 Info Configuration Framework]Leaving function ConfigWizardResult_Load.
43:0127 Info Configuration Framework]Leaving function WizardStep_NextStepChanged.

For a multi-server setup, you must use Domain Accounts and Groups.

Also, it is far easier if the installing user is Local Administrator on SQL Server and sysadmin.