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MBSA I am not sure what exactly it's expecting. If you remove this user the check passes, but the server fails.

How can it be resolved so the check passes, yet it has the limited permissions MBSA is looking for?

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The general consensus I have found is that the MBSA security settings for SQL Server are out of date and might need to be ignored. Most of the security settings are set by default when SQL Server is installed, and as you have found, if you make MBSA happy, SQL Server fails. You may want to consider unchecking "Check for SQL administrative vulnerabilities"

Source docs

MBSA folder permissions

MBSA folder permissions cont...

Edit: Security practices

Security best practices 2012

spBlitz by Brent Ozar and team

sp_Blitz is a neat little tool, and has a lot of handy SQL Server tips and tricks

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It seems "it's outdated" is a common answer surrounding this. That's essentially all I came up with. This leaves me slightly confused as Microsoft advertises this as being suitable for Server 2012, what's the deal there! Is there an alternate product one might use? – Matt May 17 '13 at 7:06
Not that I know of. I use a combination of things. I will edit my answer and include some links – Cougar9000 May 17 '13 at 18:04

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