This error is thrown in the following scenario:
To resolve this issue, the user who needs to create issue in SCTM has to be included in the StarTeam custom workflow Authorized List.
In a custom workflow, the permission to access each step is determined by the Authorized List.
Please follow these steps to determine if the user is a part of the Authorized List :
1) In SCTM, navigate to Issues -> Issue Tracking Integrations.
2) Click the StarTeam Issue Tracking Profile and take note of the Username specified.
3) Run StarTeam Workflow Designer.
4) Open StarTeam custom workflow .
5) Click the Entry step.
6) Right click and select Step Properties.
7) Click Participants tab.
8) Check the Authorized list. You may notice the username of the user and the user group of the user specified in StarTeam Issue Tracking Profile in SCTM are not in the Authorized list.
9) Click Add Groups and add the relevant group. In this example, since the Administrator username is specified in the Issue Tracking Profile, add the 'Administrators' user group.
10) Click OK to save the changes.
11) Repeat steps 6 to 10 for all the steps in the Workflow Designer.
12) Save the Workflow changes by clicking File - Save button.
After adding the user group in the Authorized list, you will not face this error when creating new issues in SCTM.