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SharePoint 2013 Troubleshooting: System.ArgumentException, SDDL contains an invalid sid

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Issue

While installing SharePoint 2013 in the development environment in a work group got this error message.

Error

An exception of type System.ArgumentException was thrown. Additional exception information: The SDDL string contains an invalid sid or sid that cannot be translated.

Parameter name: sddlForm

To diagnose the problem, review the application event log and the configuration log file located at:

C:\Program Files\Common Files\Microsoft Shared\Web Server Extensions\15\LOGS\PSCDiagnostics %%%%%%%%.log

 

Background

While everything ran smoothly, product and configuration wizard failed at step 8 showing the above error.

 

Troubleshooting

Revisited all the steps mentioned in Install SharePoint 2013 on a single server with a built-in database.

Read some of the threads on internet: http://social.technet.microsoft.com/Forums/sharepoint/en-US/bba93428-364c-4afc-ac7e-57783f15f165/standalone-install-sddl-string-contains-an-invalid-sid?forum=sharepointadmin

Best approach which resolved the issue was creating a search service account and configuring it by following the steps give in the below articles.

 

Resolution

Blog explaining the issue: http://squidpip.com/blog/sharepoint-server-2013-release-to-manufacturing-version-standalone-installation.

Step 1

http://squidpip.com/blog/sharepoint-2013-resolving-the-sddl-issue.

Step 2

http://squidpip.com/blog/sharepoint-2013-resolving-the-sddl-issue-part-2

By following the above steps the issue was resolved. I was able to run PS configuration wizard smoothly by running few last steps and completed with Steps 8, 9 and 10. The set up is complete now.