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Replication Error When Listing Directory Contents

Andrew Peterson troubleshoots a replication issue:

You’re trying to setup SQL Server Replication on a server, and it fails. Looking thru the error message you find this:

        An exception occurred while executing a Transact-SQL statement or batch.
        (Microsoft.SQLServer.ConnectionInfo)

        Destination path ………….is not valid. Unable to list directory contents. Specify a valid
            destination path.
            Changed database context to ‘master’. (Microsoft SQL Server, Error: 14430)

Read on for the solution.