Failed to create a session; confirm that the user has the proper privileges to log on to Microsoft Dynamics.

To resolve following error:
Failed to create a session; confirm that the user has the proper privileges to log on to Microsoft Dynamics.

There are 2 options.
1. File/Tools/Options/Development/ uncheck the option for "Execute business operations in CIL". Will work only for current user and actually does not solvethe problem. However, can be used in mean time to avoid blocks.
2. Run full CIL, preferable using following steps

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