The problem was caused by lack of admin permissions on the Active Directory for the user.
The following error can be seen in the logs under C:\ProgramData\Ansys\Gateway (note that this can be a hidden directory and you may need to slect the option to show hidden directories under the file explorer).
In you encountered this issue, contact Ansys to get the instructions to create the two admin groups manually (unique IDs will be provided by Ansys).
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