Fix : Message Executed as user: Proxy Domain account. The process could not be created for step 1 of job 0xD656A2765BDCF54F91F7D2CA16398CC3 (reason: A required privilege is not held by the client). The step failed.

I am running a job on SQL 2016 and server is windows 2012 R2. The job is run as proxy account which is domain account. In the job step: Type is Operating System(CmdExec), Command is Powershell as an example below.

PowerShell.exe "E:\PowerShell\FindLastRebootDate\ServerLastReboot.ps1"

The job failed with the error below.

Message Executed as user: Proxy Domain account. The process could not be created for step 1 of job 0xD656A2765BDCF54F91F7D2CA16398CC3 (reason: A required privilege is not held by the client).  The step failed.

I was able to fix the issue by.

Step 1. Change the service account running SQL Agent to Local service and restarted the SQL Agent
Step 2. Change the local service running SQL Agent to the previous service account back and restarted the SQL Agent

After that I run the job, the job ran successfully.

Thank you
Mya