Why do I receive an activation loop when using Redundant Servers?

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When launching MATLAB while using Redundant Servers, why do I receive an activation loop? 

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MathWorks Support Team
MathWorks Support Team on 9 Mar 2021
Edited: MathWorks Support Team on 9 Mar 2021
This is a bug in MATLAB R2016a.  To workaround this issue, follow the steps provided in the External Bug Report 1374124:

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