Symptoms

When we tried to re-run the blackpearl setup manager in prod, we saw that all information in the DB did not get pulled into setup manager. (Seems all was "reset" to the "default values" and the license key did not get pulled.) We then ran setup manager as the K2Service account and the information DID get pulled from the DB. We opened SSMS under the context of the K2Install account and tried to expand the K2 DB. We saw an error stating the following: The database K2 is not accessible.
 

Diagnoses

This is normally an indication that the account we are running setup as, does not have sufficient privileges to read from/write to the database.
 

Resolution

After logging in as the K2Service account, we looked at the K2 DB, expanded the "security" tab, the "K2Install" account was not listed under there. We added the "K2Install" account and gave it the required permissions. After that, we re-ran setup manager as the K2Install account and the information DID get pulled back again.

When we got to the "EWS" panel, we tested the EWS URL and the test was successful. (Judging from the error messages displayed in workspace under error profiles, this seems to have been the problem.) Before we continued, we retried one of the erroneous instances and the instances seemed to be working again.