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ADFS 3.0 IFD - ID3242: The security token could not be authenticated or authorized.

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Hello,

I have been pulling my hair out over last week trying to resolve this issue. After configuring IFD on dynamics 365 server on premise. I am able to log in via browser with no issue, but when i use sdk, particularly CrmServiceClient to connect i get the following error. ID3242: The security token could not be authenticated or authorized. I am sure the username and password are correct, i have  tried with multiple different users and different username formatting (domain\user , user, user@domain.com) all resulting in same error.  I am able to login using the login login test however and got the following output:

Microsoft.Xrm.Tooling.CrmConnectControl Information: 8 : Created CrmConnectionManager
Microsoft.Xrm.Tooling.CrmConnectControl Information: 8 : CheckBoxState = False
Microsoft.Xrm.Tooling.CrmConnectControl Information: 8 : CheckBoxState = False
Microsoft.Xrm.Tooling.CrmConnectControl Information: 8 : Using CRM deployment type Prem
Microsoft.Xrm.Tooling.CrmConnectControl Information: 8 : SSL Connection = True
Microsoft.Xrm.Tooling.CrmConnectControl Information: 8 : Discovery URI is = cgecrm.cge-led.ca/.../Discovery.svc
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Information: 8 : DiscoverOrganizations - Initializing Discovery Server Object with cgecrm.cge-led.ca/.../Discovery.svc
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Verbose: 16 : DiscoverOrganizations - attempting to connect to CRM server @ cgecrm.cge-led.ca/.../Discovery.svc
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Verbose: 16 : DiscoverOrganizations - created CRM server proxy configuration for cgecrm.cge-led.ca/.../Discovery.svc - duration: 00:00:00.7184254
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Verbose: 16 : DiscoverOrganizations - proxy requiring authentication type : Federation
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Verbose: 16 : DiscoverOrganizations - Authenticated via Federation. Auth Elapsed:00:00:00.1253930
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Verbose: 16 : DiscoverOrganizations - service proxy created - total create duration: 00:00:00.8463114
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Information: 8 : DiscoverOrganizations - Discovery Server Get Orgs Call Complete - Elapsed:00:00:00.9008526
Microsoft.Xrm.Tooling.CrmConnectControl Information: 8 : Found 1 Org(s)
Microsoft.Xrm.Tooling.CrmConnectControl Verbose: 16 : DiscoveryServer indicated organization service location = cgecrm.cge-led.ca/.../Organization.svc
Microsoft.Xrm.Tooling.CrmConnectControl Information: 8 : Organization Service URI is = cgecrm.cge-led.ca/.../Organization.svc
Microsoft.Xrm.Tooling.CrmConnectControl Information: 8 : Validating connection to Microsoft Dynamics CRM...
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Information: 8 : Process is bypassed.. OrgDetail object was provided
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Verbose: 16 : DiscoveryServer indicated organization service location = cgecrm.cge-led.ca/.../Organization.svc
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Information: 8 : Organization Service URI is = cgecrm.cge-led.ca/.../Organization.svc
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Information: 8 : ConnectAndInitCrmOrgService - Initializing Organization Service Object
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Information: 8 : ConnectAndInitCrmOrgService - Requesting connection to Org with CRM Version: 8.2.1.176
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Information: 8 : ConnectAndInitCrmOrgService - Using ISerivceManagement
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Verbose: 16 : ConnectAndInitCrmOrgService - attempting to connect to CRM server @ cgecrm.cge-led.ca/.../Organization.svc
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Verbose: 16 : ConnectAndInitCrmOrgService - created CRM server proxy configuration for cgecrm.cge-led.ca/.../Organization.svc - duration: 00:00:00.2722966
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Verbose: 16 : ConnectAndInitCrmOrgService - proxy requiring authentication type : Federation
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Verbose: 16 : ConnectAndInitCrmOrgService - Authenticated via Federation. Auth Elapsed:00:00:00.0433442
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Verbose: 16 : ConnectAndInitCrmOrgService - service proxy created - total create duration: 00:00:00.3171417
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Information: 8 : ConnectAndInitCrmOrgService - Proxy created, total elapsed time: 00:00:00.3171417
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Information: 8 : Beginning Validation of CRM Connection
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Information: 8 : Validation of CRM Connection Complete, total duration: 00:00:00.1209141
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Verbose: 16 : New Batch Manager Created, Max #of Batches:50000, Max #of RequestsPerBatch:5000
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Verbose: 16 : Claims Connection Token Debug:
	SecurityToken is Not Null
	Current Time is: 08/15/2017 13:11:03 + 2 Min for ValidFrom Check Only
	Token ValidFrom is 08/15/2017 13:14:14, Is Valid = False
	Token ValidTo is 08/15/2017 14:14:14, Is Valid = True
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Warning: 4 : Claims Connection reset tripped
	SecurityToken is Not Null
	Start From is Valid False
	End At is Valid True
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Warning: 4 : Re-Authenticating due to expired token @ 08/15/2017 09:11:03
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Warning: 4 : Claims Connection reset tripped
	SecurityToken is Not Null
	Start From is Valid False
	End At is Valid True
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Warning: 4 : Re-Authenticating due to expired token @ 08/15/2017 09:11:04
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Verbose: 16 : Executed Command - RetrieveEntity : GetEntityMetadata : duration: 00:00:00.1852494


And i get the following when trying to connect with console application:

Microsoft.Xrm.Tooling.Connector.CrmServiceClient Information: 8 : Discovery URI is = cgecrm.cge-led.ca/.../Discovery.svc
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Information: 8 : DiscoverOrganizations - Initializing Discovery Server Object with cgecrm.cge-led.ca/.../Discovery.svc
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Verbose: 16 : DiscoverOrganizations - attempting to connect to CRM server @ cgecrm.cge-led.ca/.../Discovery.svc'CRMSimpleConsole4.vshost.exe' (CLR v4.0.30319: CRMSimpleConsole4.vshost.exe): Loaded 'C:\WINDOWS\Microsoft.Net\assembly\GAC_32\System.Transactions\v4.0_4.0.0.0__b77a5c561934e089\System.Transactions.dll'. Skipped loading symbols. Module is optimized and the debugger option 'Just My Code' is enabled.'CRMSimpleConsole4.vshost.exe' (CLR v4.0.30319: CRMSimpleConsole4.vshost.exe): Loaded 'C:\WINDOWS\Microsoft.Net\assembly\GAC_MSIL\Microsoft.VisualStudio.Diagnostics.ServiceModelSink\v4.0_4.0.0.0__b03f5f7f11d50a3a\Microsoft.VisualStudio.Diagnostics.ServiceModelSink.dll'. Skipped loading symbols. Module is optimized and the debugger option 'Just My Code' is enabled.'CRMSimpleConsole4.vshost.exe' (CLR v4.0.30319: CRMSimpleConsole4.vshost.exe): Loaded 'C:\WINDOWS\Microsoft.Net\assembly\GAC_MSIL\System.ServiceModel.Channels\v4.0_4.0.0.0__31bf3856ad364e35\System.ServiceModel.Channels.dll'. Skipped loading symbols. Module is optimized and the debugger option 'Just My Code' is enabled.'CRMSimpleConsole4.vshost.exe' (CLR v4.0.30319: CRMSimpleConsole4.vshost.exe): Loaded 'C:\WINDOWS\Microsoft.Net\assembly\GAC_MSIL\System.Net.Http\v4.0_4.0.0.0__b03f5f7f11d50a3a\System.Net.Http.dll'. Skipped loading symbols. Module is optimized and the debugger option 'Just My Code' is enabled.
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Verbose: 16 : DiscoverOrganizations - created CRM server proxy configuration for cgecrm.cge-led.ca/.../Discovery.svc - duration: 00:00:01.6441543
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Verbose: 16 : DiscoverOrganizations - proxy requiring authentication type : Federation'CRMSimpleConsole4.vshost.exe' (CLR v4.0.30319: CRMSimpleConsole4.vshost.exe): Loaded 'C:\WINDOWS\Microsoft.Net\assembly\GAC_MSIL\System.IdentityModel.Selectors\v4.0_4.0.0.0__b77a5c561934e089\System.IdentityModel.Selectors.dll'. Skipped loading symbols. Module is optimized and the debugger option 'Just My Code' is enabled.'CRMSimpleConsole4.vshost.exe' (CLR v4.0.30319: CRMSimpleConsole4.vshost.exe): Loaded 'C:\ApplicationDevelopment\CRMSimpleConsole4\CRMSimpleConsole4\bin\Debug\Microsoft.Xrm.Sdk.Deployment.dll'. Skipped loading symbols. Module is optimized and the debugger option 'Just My Code' is enabled.
Microsoft.Xrm.Tooling.Connector.CrmServiceClient Error: 2 : Source	: System.ServiceModel
Method	: ReadResponse
Date	: 8/15/2017
Time	: 9:29:32 AM
Error	: ID3242: The security token could not be authenticated or authorized.
Stack Trace	: at System.ServiceModel.Security.WSTrustChannel.ReadResponse(Message response)
   at System.ServiceModel.Security.WSTrustChannel.Issue(RequestSecurityToken rst, RequestSecurityTokenResponse& rstr)
   at Microsoft.Xrm.Sdk.Client.ServiceConfiguration`1.Issue(AuthenticationCredentials authenticationCredentials)
   at Microsoft.Xrm.Sdk.Client.ServiceConfiguration`1.AuthenticateInternal(AuthenticationCredentials authenticationCredentials)
   at Microsoft.Xrm.Sdk.Client.ServiceConfiguration`1.AuthenticateFederationInternal(AuthenticationCredentials authenticationCredentials)
   at Microsoft.Xrm.Sdk.Client.ServiceConfiguration`1.Authenticate(AuthenticationCredentials authenticationCredentials)
   at Microsoft.Xrm.Sdk.Client.DiscoveryServiceConfiguration.Authenticate(AuthenticationCredentials authenticationCredentials)
   at Microsoft.Xrm.Tooling.Connector.CrmWebSvc.ClaimsIFDFailOverAuth[T](IServiceManagement`1 servicecfg, Uri homeRealm, ClientCredentials userCredentials, ClientCredentials deviceCredentials, Int32 depthLevel, Boolean tryNetworkCred)
   at Microsoft.Xrm.Tooling.Connector.CrmWebSvc.CreateAndAuthenticateProxy[T](IServiceManagement`1 servicecfg, Uri ServiceUri, Uri homeRealm, ClientCredentials userCredentials, ClientCredentials deviceCredentials, String LogString)
   at Microsoft.Xrm.Tooling.Connector.CrmWebSvc.DiscoverOrganizations(Uri discoveryServiceUri, Uri homeRealmUri, ClientCredentials clientCredentials, ClientCredentials deviceCredentials)
   at Microsoft.Xrm.Tooling.Connector.CrmWebSvc.DiscoverOrganizations(Uri discoveryServiceUri, Uri homeRealmUri, NetworkCredential networkCredential)
   at Microsoft.Xrm.Tooling.Connector.CrmWebSvc.InitCRM2011Service()
======================================================================================================================

Microsoft.Xrm.Tooling.Connector.CrmServiceClient Error: 2 : Unable to Login to Dynamics CRM



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