Can insufficient Active Directory permissions for the SQL Server service account cause Error 15404?

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Grade: Education Subject: Support
Can insufficient Active Directory permissions for the SQL Server service account cause Error 15404?
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Yes, absolutely. If the SQL Server service account lacks the necessary permissions to read user and group information from Active Directory (e.g., if it's running under a local system account on a standalone server trying to add a domain user without proper network permissions, or a domain account that has been restricted), it will be unable to resolve the specified Windows principal. This inability to resolve the identity leads directly to Error 15404. Using a domain account with appropriate network read access to AD is crucial for seamless integration.