I’d like to thank Will Hirst (Microsoft ITSM Infrastructure
Consultant) for finding the answer to this problem.

When using Visual Studio on a machine running Windows Server
2012, even with User Access Control set to the lowest level, you may need to
start the application with administrative rights to perform some operations.

In this example, I try to manage a test agent and receive a
permissions error.

When Visual Studio is started as an administrative process

the operation is successful.

This can be frustrating as the error that’s shown isn’t
logged in Event Viewer, nor in the trace files that the controller and agent
services can create.