WORKAROUND 1
Complete the installer using a SQL Server Authentication user for the repository account.
Once the installation completes it can be changed to use Windows Authentication. For more information refer to How to change the Foglight repository to use Windows authentication instead of SQL Server authentication (4258033).
WORKAROUND 2
[FMS_HOME]\bin\fms.exe -i and set the Windows account on the service.
STATUS
This issue has been logged as defect Id. FOG-7102 has been fixed in the 7.3.0 release of Foglight.