Please make sure you're using an account that has the necessary permissions to start new services
If you are 100% certain that you have the necessary permissions and you're still unable to get this to work, please try the following steps that succeeded for another customer with this issue:
1. Uninstall Test Studio.
2. Delete the .config files from C:\ProgramData\Telerik\Configs
3. Install Test Studio.
Please give it a try and let me know the result.
All the best,
the Telerik team