This error manifests by not allowing the user to start the client at all. Capture services appears to be running but does not allow the user to start the client, and it either does not display any initial load screen or crashes immediately after doing so.
This issue is a registry entries permissions issue, and does not occur if the user is a Windows Administrator.
The error reads as follows in PSIcapture Security Manager User History:
User failed to login from [Domain\Computer name]. Impersonation is not supported by the Windows security provider. (user.SYSTEM)
Open up regedit and give the user permissions, manually, through the properties of the following registry entries:
HKEY_LOCAL_MACHINE\SOFTWARE\WOW6432Node\PSIGEN Software, Inc.
Full read/write permissions. Ensure that all the additional directories including C:\ProgramData\PSIGEN and C:\Program Files (x86)\PSIGEN are also given permissions for read/write access for the user.