Symptoms
Authorization Failed
Diagnoses
When you attempt to create a K2 smart object an authorization error is received. The user has been added to the Smart Objects -> Security -> Smart Objects Administration with Publish and Delete rights is added to the Workflow Server -> Server Rights with Admin, Export, Impersonate rights.
Resolution
Try to re-add the user back into the smart object administration section under security as well as smartbox administration >>>> security, both categories with full permissions this should seem to resolve the issue.