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Cannot Generate SSPI Context

Dave Mason troubleshoots an annoying connectivity error message:

Ah! An “SSPI” error. I was certain I knew what the problem was. It had to be a failure to properly register the SPN. I was prepared to run a few SetSPN.exe commands to fix the problem and be on my way. To my surprise, the SPN *was* registered correctly, as I discovered in the Log File Viewer:

Click through for the solution.