Batch enrollment error: Target Invocation Exception

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Symptoms Second step of batch enrollment returns an error for all accounts I try to enroll.

The message says Exception has been thrown by the target of an invocation.
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Cause The error occurs on the step where Password Manager tries to save question/answer pairs to it's database and is unable to.

This is done with help of .NET functions, so .NET 3.5 is required.
Resolution Make sure that:
  1. . Net 3.5 SP1 is installed in the system
  2. Question/answer pairs correspond with Question policy within Password Manager
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