Issue
When attempting to create the FIM Service Management Agent we see an error on the 'Connect to Database' section of the MA configuration.
https://microsoft.sharepoint.com/teams/iamsupport/iamblog/SiteAssets/extension_operation_1.png
Resolution
Swapping the supportedRuntime lines in the miiserver.exe.config resolved the issue.
<startup useLegacyV2RuntimeActivationPolicy="true">
<supportedRuntime version="2.0.50727"></supportedRuntime>
<supportedRuntime version="v4.0"</supportedRuntime>
</startup>