Hi Prabhjot Singh,
Outside of basic forms-based websites and Entra connectors, reporting and collaboration platforms are the most frequent workloads to break. SharePoint Server environments that authenticate users via SAML or federated claims rely on the Windows Identity Foundation Claims to Windows Token Service (c2wts), controlled by C:\Program Files\Windows Identity Foundation\v3.5\c2WTShost.exe.config (the configuration file that specifies which local service identities are allowed to translate claims into Windows credentials). Similarly, when standalone SQL Server Reporting Services (SSRS) or Power BI Report Server instances are configured for Integrated Windows Authentication via RSWindowsNegotiate inside rsreportserver.config (the main reporting configuration file) and published externally through Windows Server Web Application Proxy (WAP), the WAP server's computer account must translate incoming OAuth or AD FS tokens into Kerberos tickets. Switching either the c2wts service account or the WAP computer account to "Use Kerberos only" prevents them from impersonating federated users to backend SQL Server (MSSQLSvc) or Analysis Services (MSOLAPSvc) databases, resulting in immediate login failures for NT AUTHORITY\ANONYMOUS LOGON.
Active Directory Certificate Services (AD CS) Certificate Enrollment Web Service (CES) and edge reverse proxies also break when they terminate client certificates or multi-factor tokens before reaching Active Directory. When CES is configured for Client Certificate Authentication so domain computers or VPN-less devices can renew certificates over HTTPS, IIS authenticates the client's existing X.509 certificate via the Windows TLS Schannel provider rather than Kerberos. The CES service account must then use protocol transition to impersonate that client to the Enterprise Issuing Certification Authority over Remote Procedure Call services (HOST and rpcss SPNs); removing "Use any authentication protocol" causes certificate renewals to fail with Access Denied (0x80070005). The exact same outage occurs on hardware load balancers like F5 BIG-IP APM and Citrix NetScaler, or IIS gateways using Client Certificate Mapping inside C:\Windows\System32\inetsrv\config\applicationHost.config (the master IIS configuration file that maps incoming smart cards or client certificates to Active Directory accounts), whenever they terminate smart card (PIV/CAC), RADIUS, or SAML authentication at the network edge in front of Kerberos-protected SAP or .NET backend services.
To identify which production accounts actively rely on protocol transition before talking to application owners, enable "Audit Kerberos Service Ticket Operations" on your Domain Controllers and inspect C:\Windows\System32\winevt\Logs\Security.evtx (the Windows Security Event Log file) for Event ID 4769. Active protocol transition produces a self-directed 4769 event (S4U2Self) where the Service Name and Client Address match the delegated front-end service while the Account Name shows the impersonated user, followed immediately by a second 4769 event (S4U2Proxy) targeting the backend SPN with the front-end service listed under Transited Services. When testing "Use Kerberos only" in a staging window, you can also navigate to the registry key HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Lsa\Kerberos\Parameters on the application server and set the LogLevel REG_DWORD value to 0x1, which turns on detailed Kerberos diagnostic logging in the System Event Log (C:\Windows\System32\winevt\Logs\System.evtx) without requiring a reboot.
Hope this answer has brought you some useful information. If it did, please hit “accept answer”. Should you have any questions, feel free to leave a comment.
VPHAN