SQL Server 2012 Enterprise Installation Failure by DevSeeker

I have a server with SQL Server 2008 R2 SP2 that is the host for SharePoint Foundation 2010 and uses Reporting Services in SharePoint-Integrated Mode.

I have tried multiple times to upgrade this server to SQL Server 2012 Enterprise and every time I try the upgrade I get a failure that states "Can't create the managed service account" for the reporting services piece. This causes the whole upgrade to fail.

I have tried multiple switches to get around this issue but I fail every time and get this error. Prior to the upgrade, when setup gets to the reporting services piece it prompts for the application pool password of the account (greyed out account name) that already is running the reporting services in integrated mode (not a managed service account but is an Active Directory account). I even tried uninstalling SQL Server 2008 R2 SP2 to have it rollback to SP1 and I still get the same error.

I do not want to use a managed service account for the SharePoint-integrated mode but I am not being prompted to pick the type of account either. It seems as if setup assumes that is what I want to do. I do not have permissions to create a managed service account.

This prevents my upgrade to SQL Server 2012 on this server. I have not run into this issue on other SQL Servers that do not use SharePoint-integrated mode.

Here is a portion of the detailed error from the setup log with <accountname> being shown in place of the account I'm trying to use:

(01) 2012-07-31 15:00:04 Slp: Sco: Attempting to determine if the password is required for account '<accountname>'
(01) 2012-07-31 15:00:04 Slp: Sco: Attempting to determine if the account '<accountname>' is Virtual Account
(01) 2012-07-31 15:00:04 Slp: Sco: Attempting to get account sid for user account <accountname>
(01) 2012-07-31 15:00:04 Slp: Sco: Attempting to get sid for user account <accountname>
(01) 2012-07-31 15:00:04 Slp: Sco: GetSidForAccount normalized accountName <accountname> parameter to <accountname>
(01) 2012-07-31 15:00:04 Slp: Sco: Attempting to determine if the account '<accountname>' is Managed Service Account
(01) 2012-07-31 15:00:04 RS_SHP: Running PowerShell Script:
(01) 2012-07-31 15:00:06 RS_SHP: Pipeline Error when running PowerShell script: Reason Account <accountname> has already been registered.
(01) 2012-07-31 15:00:06 RS_SHP: Running PS Script failed. Reason:Account <accountname> has already been registered.
(01) 2012-07-31 15:00:06 RS_SHP: Can't create the SharePoint managed account.
(01) 2012-07-31 15:00:06 RS_SHP: System.Exception: Account <accountname> has already been registered.
(01) 2012-07-31 15:00:06 Slp: Configuration action failed for feature RS_SHP_SharedService_Adv during timing ConfigNonRC and scenario ConfigNonRC.
(01) 2012-07-31 15:00:06 Slp: Can't create the managed account named <accountname>.
(01) 2012-07-31 15:00:06 Slp: The configuration failure category of current exception is ConfigurationFailure
(01) 2012-07-31 15:00:06 Slp: Exception type: Microsoft.SqlServer.Configuration.RSSHPExtension.RSSHPCantCreateManagedAccount
(01) 2012-07-31 15:00:06 Slp:     Message:
(01) 2012-07-31 15:00:06 Slp:         Can't create the managed account named <accountname>.
(01) 2012-07-31 15:00:06 Slp:     HResult : 0x84d90004
(01) 2012-07-31 15:00:06 Slp:         FacilityCode : 1241 (4d9)
(01) 2012-07-31 15:00:06 Slp:         ErrorCode : 4 (0004)
(01) 2012-07-31 15:00:06 Slp:     Data:
(01) 2012-07-31 15:00:06 Slp:     SQL.Setup.FailureCategory = ConfigurationFailure
(01) 2012-07-31 15:00:06 Slp:     WatsonConfigActionData = UPGRADE@CONFIGNONRC@RS_SHP_SHAREDSERVICE_ADV
(01) 2012-07-31 15:00:06 Slp:     WatsonExceptionFeatureIdsActionData = System.String[]
(01) 2012-07-31 15:00:06 Slp:     Stack: