Access is denied. 0x80070005 localhost SAS.Workspace.1.0 39220

[AndreasMenrath]

Are you sure that the error message from other COM objects are the same?

Formerly you posted this result:

<connectionAttempts>
    <connectionAttempt>
        <description>Access is denied.
</description>
        <status>0x80070005</status>
        <saslogin></saslogin>
        <sasmachinednsname></sasmachinednsname>
        <sasclassid></sasclassid>
        <sasprogid>SAS.Workspace.1.0</sasprogid>
        <threadid>17200</threadid>
        <name>mylocalserver</name>
    </connectionAttempt>
</connectionAttempts>

That XML error message is formatted in SAS error XML which means that you were at least able to successfully create these two COM objects

$objFactory = New-Object -ComObject SASObjectManager.ObjectFactoryMulti2
$objServerDef = New-Object -ComObject SASObjectManager.ServerDef 

According to your log the error occurs when you call

 $objFactory.CreateObjectByServer(...)

I hope this helps you to isolate the error.

[JackDuan]

I ran into exactly same xml error message when I try accessing a C#/SAS Web Application hosted in IIS. I solved this issue by 

going to: IIS Manager -> Application Pools -> Advanced Settings -> Identity, update Identity from Application Pool Identity to LocalSystem.

You guys are right, looks like a Windows execution privilage issue.