I’m having trouble installing SQL Server 2022 via the command line interface (CLI). The installation fails with the following error:

• Cannot initialize SSPI package.
• The security account manager (SAM) or local security authority (LSA) server was in the wrong state to perform the security operation
• Updating permission setting for wmi namespace ‘.rootMicrosoftSqlServerServerEventsTESSELLSERVER’ failed. Principal ‘NT SERVICESQLAgent$SERVER’ was tried to be added to the wmi namespace permission setting.

Here’s what I know so far:

The SQL Server installation works perfectly when using the GUI wizard.
The options used in both the GUI and CLI installations are exactly the same.

The only significant difference is that the GUI installation runs as a local administrator account, while the CLI installation runs using the NT AUTHORITYSYSTEM account (this is by design).

Has anyone faced this issue or have any insights into why SSPI initialization might fail in the CLI installation but work in the GUI? Any help would be appreciated.

Thanks!

Detailed results:
  Feature:                       Database Engine Services
  Status:                        Failed
  Reason for failure:            An error occurred during the setup process of the feature.
  Next Step:                     Use the following information to resolve the error, uninstall this feature, and then run the setup process again.
  Component name:                SQL Server Database Engine Services Instance Features
  Component error code:          0x84BB0001
  Error description:             The security account manager (SAM) or local security authority (LSA) server was in the wrong state to perform the security operation.
  Error help link:               https://go.microsoft.com/fwlink?LinkId=20476&ProdName=Microsoft+SQL+Server&EvtSrc=setup.rll&EvtID=50000&ProdVer=16.0.1000.6&EvtType=0x90F5BF4F%400xDC80C325&EvtType=0x90F5BF4F%400xDC80C325
  Component name:                SQL Server Database Engine Services Instance Features
  Component error code:          0x85530002
  Error description:             Updating permission setting for wmi namespace '\.rootMicrosoftSqlServerServerEventsTESSELLSERVER' failed. Principal 'NT SERVICESQLAgent$SERVER' was tried to be added to the wmi namespace permission setting. The wmi namespace permission setting was supposed to be set to 'O:BAG:BAD:P(A;CI;CCDCLCSWRPWPRCWD;;;BA)(A;CI;CCDCRC;;;S-1-5-80-625679012-285306912-2308697553-3474468234-1794389085)'.
  Error help link:               https://go.microsoft.com/fwlink?LinkId=20476&ProdName=Microsoft+SQL+Server&EvtSrc=setup.rll&EvtID=50000&ProdVer=16.0.1000.6&EvtType=0xF8BF681E%400x90317E76&EvtType=0xF8BF681E%400x90317E76`

I have tried with taken a fresh VM and tried to install SQL Server with CLI and GUI. It goes through. This happens in production env. Whereas dev env it works fine.