Resolving SQL Server 2019 Service Account Password Errors in Home Labs

So, you’re diving into your home lab setup, crafting a cloud-driven environment with all the right players—multiple Windows Server 2022 Datacenter instances, Active Directory, a System Center Operations Manager (SCOM) server, and of course, SQL Server 2019. A lab like this screams PowerUser! But then… BAM! An error message about your service account's password halts your progress dead in its tracks. Frustrating, isn’t it?
Fear not, this guide will help troubleshoot and resolve the service account password error for SQL Server 2019 installations in your cloud-based home lab. Let’s break it all down step-by-step and help you get that SQL installation finished so you can get back to geeking out!

---

What We Know About the Problem​

From the description of your setup, the environment looks like this:

• Operating System: Windows Server 2022 Datacenter, running entirely in the cloud.
• Active Directory: Two AD servers manage the environment.
• Other Servers: One dedicated to SQL Server 2019, one for System Center Operations Manager (SCOM).
• Network Details: All servers communicate seamlessly within the same virtual network.
• Error Specifics: You’re receiving a service account password error during SQL Server installation. To troubleshoot, you’ve:
• Verified the service account is a member of the local administrators group on the SQL Server machine.
• Reset the service account password multiple times, but still get slammed with that error message.

We’re going to figure out why SQL Server is throwing tantrums over that service account password.

---

Root Causes to Explore​

SQL Server’s installation process can be tricky when configured to use a dedicated service account. The error you’re running into could stem from any of the following issues:

• Insufficient Permissions for the Service Account
  Even if the account is part of the local administrators group, it doesn’t automatically have permissions to access certain files or run as a service.
• Password Policy Misalignment
  If the service account’s password doesn’t meet domain security policies (e.g., minimum complexity, history enforcement), the setup will fail.
• Kerberos Authentication Restrictions
  Cloud-based environments with Active Directory can sometimes face hiccups with Kerberos authentication. This might affect SQL Server’s ability to validate the service account credentials.
• GPO Enforcement or Explicit Denials
  Active Directory group policies applied to the SQL server could override local admin permissions or restrict the service account’s ability to log in as a service.
• Cached Credentials or Configuration Artifacts
  Resetting the service account password might not immediately clear cached credentials during SQL Server’s setup phase.

---

Step-by-Step Troubleshooting and Resolution​

Let’s tackle these potential issues methodically:

1. Verify Service Account Permissions​

Ensure your service account has:

• Log on as a service permission:
  Check through the Local Security Policy tool (secpol.msc) or Group Policy settings. Navigate to:
  Security Settings -> Local Policies -> User Rights Assignment -> Log on as a service
  Add the service account if it’s missing.
• Explicit File System Access:
  The SQL Server installer saves temporary setup files in specific directories. Explicitly grant your service account “Full Control” permissions for the following paths:
• %TEMP%
• %SystemDrive%\Program Files\Microsoft SQL Server
• %ProgramData%\Microsoft\SQL Server
  Use the icacls command or the GUI properties menu to set the permissions.

---

2. Check Active Directory Password Policy Compliance​

Validate that the service account password you’re using adheres to your organization’s domain security policies:

• Minimum password length
• Complexity requirements (uppercase, lowercase, numbers, special characters)
• Avoiding previous password reuse violations
  Use the Active Directory Users and Computers (ADUC) console (dsa.msc) to examine the password policy settings and ensure compliance.

---

3. Configure Kerberos and SPNs (Service Principal Names)​

Kerberos issues can emerge in cloud-hosted environments where domain controllers (DCs) are virtualized or geographically distant. Here’s what to look for:

• Use the setspn command to verify and configure Service Principal Names for your SQL Server instance. Example:
  

  cmd
  
       setspn -Q MSSQLSvc/SQLSERVERNAME
  
       setspn -A MSSQLSvc/SQLSERVERNAME:1433 DOMAIN\ServiceAccount

• Ensure that the DNS settings on the SQL Server are pointing to the correct DC. Test Kerberos authentication using tools like klist.

---

4. Assess Group Policy Restrictions​

Group Policy Objects (GPOs) applied to your servers could be limiting the service account in unexpected ways. On the SQL Server machine:

• Run gpresult /h gporesult.html to see all applied policies.
• Look for any policies that override:
• Local Administrator permissions
• Service log-on rights
• File access
• Adjust policies in the Group Policy Management Console (GPMC) as needed.

---

5. Refresh or Re-enter Credentials​

Sometimes, resetting a service account password creates mismatches between stored credentials and runtime configurations:

• Delete and re-add the service account as part of the SQL Server setup.
• Clear the Local Security Authority (LSA) cache on the SQL Server using the nltest command:
  

  cmd
  
       nltest /sc_change_pwd:DOMAIN

• Restart the SQL Server machine to ensure all cached credential issues are purged.

---

6. Dive Into the Installation Logs​

SQL Server setup logs are pure gold for diagnosing obscure issues. Check here for specific failure points:

• %ProgramFiles%\Microsoft SQL Server\150\Setup Bootstrap\Log
  Look for the Summary.txt and Detail.txt files, which pinpoint why the installer rejected your service account credentials.

---

Prevention and Best Practices for the Future​

To avoid similar issues during future installations:

• Use Managed Service Accounts (MSAs) when possible. These accounts minimize manual credential configuration and eliminate password issues.
• Define a dedicated installation account with admin permissions temporarily assigned. Remove excess access post-installation to secure the setup environment.
• Document and test your lab configurations before rolling out major installations or updates.

---

Wrapping It Up​

At the core of most SQL Server installation woes is a permissions headache—somewhere, the installer either can’t authenticate the service account or access files needed for setup. By systematically verifying permissions, policies, cached data, and runtime environment, you’ll be back on track in no time.
Still stuck? Drop your SQL Server setup logs in the comments below, and let’s troubleshoot together as a community. That SQL Server won’t install itself—let’s make it happen!

---

Source: Spiceworks Community SQL Server 2019 installation for Lab