/Preparedomain error when security customizations have been done to Active Directory


Error:

Configuring Microsoft Exchange Server

    Organization Preparation                                  FAILED
     The following error was generated when "$error.Clear();
          if ($RolePrepareAllDomains)
          {
              initialize-DomainPermissions -AllDomains:$true -CreateTenantRoot:(
$RoleIsDatacenter -or $RoleIsPartnerHosted);
          }
          elseif ($RoleDomain -ne $null)
          {
              initialize-DomainPermissions -Domain $RoleDomain -CreateTenantRoot
:($RoleIsDatacenter -or $RoleIsPartnerHosted);
          }
          else
          {
              initialize-DomainPermissions -CreateTenantRoot:($RoleIsDatacenter
-or $RoleIsPartnerHosted);
          }
        " was run: "PrepareDomain for domain Domain was unable to add the group CN=Exchange Install Domain Servers,CN=Microsoft Exchange System Objects,DC=domain,DC=local to the group CN=Exchange Servers,OU=Microsoft Exchange Security Groups,DC=domain,DC=local on domain controller server.domain.local, because the current user does not have permissions to modify Exchange Servers. Please ensure that the current user can modify the membership of Exchange Servers and run PrepareDomain again.".

Problem:
The user doesn’t have permission to modify the AD groups it needs to modify.
“Exchange Server” group that was created by /preparedomain is member of “Windows Authorization Access Group” group. 
If the permission on that group are changed, /preparedomain may not be able to modify the membership of it. 
Of course, exchange setup gives you some bogus error, which does not make any sense. Winking smile

Solution:

  1. Verify that you are running the /preparedomain as a domain admin
  2. Once we reset it’s permission by checking “inherted” option on the “Windows Authorization Access Group”,  we can manually add Exchange Server group as a member of “Windows Authorization Access Group” Group, and re run /preparedomain and it should run without error.

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