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AutoCAD 2017: The License manager is not functioning or is improperly installed

Issue:

When attempting to launch AutoCAD 2017 (or an AutoCAD 2017 vertical) for the first time, the application opens to the drawing editor and displays the following “License Error” message: 
 
The License manager is not functioning or is improperly installed. AutoCAD will shut down now.

User-added image 
 

Causes:

The LGS.data file is corrupt or failed to install. Another possible cause is redirecting of HTTP traffic caused by malware.

Solution:

  1. Right click on the AutoCAD Icon and try to run as Administrator, see if it runs correctly and accepting the license. Then log in as user who has problem to see if user then can run successfully? In not proceed to step 2.
  2. Verify that FlexNet Licensing Service 64 is not disabled in Windows Services console.
  3. Using Windows Explorer, browse to the following folder:
    C:\ProgramData\Autodesk\CLM\LGS\<Product_Key>_2017.0.0.F 

    If the folder does not exist, create it. 

    Note: The product key must match the product that is giving the error. For example, if you get the error with AutoCAD 2017 you need to use product key 001I1. For AutoCAD Architecture 2017 you would use product key 185I1. This is true even if you installed from a suite.

    User-added image

  4. Delete the LGS.data file, if it exists.
  5. Using Notepad (or preferred text editor) create a new text file called LGS.data.
  6. Add the following text to the text file:
    _STANDALONE (or _NETWORK if the product uses a network license). The text must be all capital letters.

    User-added image

  7. Save the file to the following folder:
    C:\ProgramData\Autodesk\CLM\LGS\<Product_Key>_2017.0.0.F
  8.  Launch AutoCAD.

If the above solution does not work please try the following solution. 
 
  1. Disable your Antivirus Software.
  2. Create a new activation file via the following steps:
    1. Remove all files under C:\Users\<username>\AppData\Roaming\Autodesk\ADUT. You may need to show hidden files and folders if you cannot see the AppData folder.
    2. Under C:\ProgramData\Autodesk\ADUT, delete the ProdInd_UserInd.cur file.
    3. Go to C:\ProgramData\FLEXnet and delete any files that start with adskflex.
    4. Run your Autodesk product and try activating.

* This problem can occur if malware is installed and redirecting http traffic. Perform a system scan with your Antivirus\malware removal tool. Check browser add-tools. 
 
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