Recently I was at a customer, which couldn’t get SharePoint to work with their default GPO’s applied. After some research, I noticed that the following error was being logged
“An exception occurred when trying to issue security token: This implementation is not part of the Windows Platform FIPS validated cryptographic algorithms.
After running a gpresult, I noticed that the following setting was configured through GPO
|System cryptography: Use FIPS compliant algorithms for encryption, hashing, and signing||Enabled||XXX-XXX|
This resulted in the following registry key being enabled: HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Lsa\fipsalgorithmpolicy
registry subkey is set to 1.
As it turns out, SharePoint does not work with FIPS Compliance and this should be disabled for SharePoint servers.