This has to do with FIPS Compliant Algorithms group policy, but the policy was disabled. Microsoft’s documentation states that the GPO controls the reg key [HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Lsa\FipsAlgorithmPolicy]. This key was disabled (set to 1), I created a GPO at my workstation level and caused an update/replace entry [HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Lsa] and set fipsalgorithmpolicy to 0. On the next reboot the machine should no longer cause the Schannel errors.
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