Symptoms

We are getting the following error when trying to deploy a K2 package:
Error refreshing Service Instance 'site_name___sub_site_name'. Service returned : 'Access denied. You do not have permission to perform this action or access this resource.Failed to initialize the Context: URL: https:// site_name___sub_site_name Username: Correlation ID: xxxxx-xxxx?xxx Error Details: Method: SharePointService.initializeContext '. System.Exception: Error refreshing Service Instance ' site_name___sub_site_name '. Service returned : 'Access denied. You do not have permission to perform this action or access this resource.Failed to initialize the Context:
 

Diagnoses

Issue is reproducible when executing generated SharePoint list SmartObject?s Create method from SmartObject Tester tool under the user account. The issue has to do with using broken inherited permission site with custom SharePoint group permission. The custom SharePoint group permission has far fewer permissions than the default SharePoint Contributed right permission. When giving the SharePoint group out-of-the-box Contribute SP permission, then it would work.
 

Resolution

Using Out-of-the-box SharePoint Contributed Right permission resolved the issue.