SCSM 2012 Upgrade: “[Group] is not a valid Active Directory group or user”

Today I encountered a problem when I tried to upgrade one of my customer’s SCSM 2010 SP1 environment to SCSM 2012 RTM. The setup was aborted with the error message “[Group] is not a valid Active Directory group or user”. It took me quite a while to find the root cause of this problem, so I thought I will share it for those of you who run into the same issue.

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