Problem Description:

The machine's group policy is configured to permit only FIPS-compliant encryption algorithms.

 

Solution:

Enable FIPS-compliant mode in Windows Desktop License Client.

1] Install Connection Client

2] Open the Registry editor and navigate to this location: HKEY_LOCAL_MACHINE\SOFTWARE\Bentley\LicenseService

3] Create a DWORD with the name FIPSENABLED

4] Set its value to 1

5] Restart the machine

Upgrade your CONNECTION client to the latest version 24.01.00.23, which was a notable fix for this error. 

CONNECTION Client Release Notes