When configuring the network license manager as a Windows Service, why do I receive the error "Windows preferred path <SystemDri​ve>\Progra​mData to store service data is not set."?

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When using the 'Use Services' option in the Config Services Tab in LMTools, I'm getting an error:
Windows preferred path <SystemDrive>\ProgramData to store service data is not set. Please ensure Local Service user has modify privilege on the folder containing the debug log.

Accepted Answer

MathWorks Support Team
MathWorks Support Team on 1 Jun 2021
Edited: MathWorks Support Team on 14 Jun 2021
This can occur after certain Windows Server updates.
Our recommendation is to either choose a log location in C:\ProgramData or add the "Local Service" user account to the log file location specified in the Config Services path with read, write, and execute permissions. Save the changes and try starting the license manager again.

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