Microsoft KB article 811833 explains the details of this security policy. It can be enabled by changing the local policy on Windows or applying via a group policy.
"System cryptography: Use FIPS compliant algorithms for encryption, hashing, and signing" must be disabled in order to resolve the problem.
You can configure this security setting by opening the appropriate policy and expanding the console tree as such: Computer Configuration\Windows Settings\Security Settings\Local Policies\Security Options\
Double click on "System cryptography: Use FIPS compliant algorithms for encryption, hashing, and signing" policy | check radio button "Disabled" | then restart the server or perform "gpupdate /force" on a command prompt. Make sure the command prompt is launched as the administrator.