Server was unable to process request. ---> Could not retrieve a valid Windows identity. ---> Access is denied.

Error Name:

Server was unable to process request. ---> Could not retrieve a valid Windows identity. ---> Access is denied.

********************

Error Message: (Event Viewer)

The Web site http://xxxxxx/sites/DynamicsAx was not created correctly.

Server was unable to process request. ---> Could not retrieve a valid Windows identity. ---> Access is denied.

System.Web.Services.Protocols.SoapException
   at System.Web.Services.Protocols.SoapHttpClientProtocol.ReadResponse(SoapClientMessage message, WebResponse response, Stream responseStream, Boolean asyncCall)
   at System.Web.Services.Protocols.SoapHttpClientProtocol.Invoke(String methodName, Object[] parameters)
   at Microsoft.Dynamics.Framework.Deployment.Services.EPDeploymentService.CreateAxSitesAndPages(String siteUrl)
   at Microsoft.Dynamics.Framework.Portal.Deployment.EPFeatureReceiver.CreateAxSiteContent(SPWeb site, Boolean isEPHomeSite)

   at Microsoft.Dynamics.Framework.Portal.Deployment.EPFeatureReceiver.ProvisionAxSite(SPWeb site)


Solution:
  1. Check if the User Account used for Installation is a member of Authenticated Users. If not add the User Account.
  2. Check if Authenticated Users has Read permissions. If not update the Authenticated User permissions and give Read permissions.
  3. See image below




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