Later today, I’ll be posting this new item in the online version of the Team Foundation Server Readme:
2.10. Team Foundation Server installation fails if the server was promoted to domain controller after installing any Team Foundation Server prerequisites
If you plan to install Team Foundation Server on a domain controller, Team Foundation Server setup will fail if any Team Foundation Server prerequisites were installed prior to promoting the server to domain controller. When a server is promoted to domain controller, all local user accounts and cryptographic keys are deleted. If Internet Information Services, Windows SharePoint Services, or SQL Server 2005 is already installed on a server that is promoted to domain controller, you will need to completely uninstall, and then reinstall, each of those applications before installing Team Foundation Server.
To resolve this issue
Promote the server to domain controller prior to installing any Team Foundation Server prerequisites.