Cannot configure SMIS user

I am trying to prepare the SMI-S user for our connection to VMM. I am going through this video by Dell TechCenter that explains in detail. 

I am at the steps at around the 6:40 mark of the video where it uses the "Configuration via PowerShell" to create the SMIS local user and assign it a certificate. I am stuck at the part where it needs to create the Logon as a Service right to the SMIS user… As you can tell by the pic below, I have manually assigned the SMIS (domain and local) user to the Logon as a Service right, but it is still giving me the same error. Currently the program only launches in “normal” mode. If I try to run it as Administrator, it quickly/momentarily opens a command window and goes away. This server is no longer under any GPO and Group Policy is being managed locally, but still no luck.

OS is Server 2012 R2

We are using 'SMIS' as account name, as shown in the 

Any assistance?