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Unable to create new project in ALM - Performance Center 11.0

Unable to create new project in newly installed ALM - Performance Center 11.0.

Error message: "Failed to Create Project".

Messages:
Failed to Create Project;
Failed to create Quality Center project;
Failed to create project 'testProject';
Failed to create new project 'testProject';
Failed to add users _pc_system_ to project testProject;
;
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