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When reviewing the ArcGIS License Manager log file, the following message appears in the log:
"Error: Non-activation-capable daemon activation invoked with non-client-request event type".
This message refers to a newer technology (Accresso Technology) that the ArcGIS License Manager authors use for license management called 'trusted storage.' ESRI uses certificate-based licensing, which is the older format carried over from the v7.0d License Manager.
This error sometimes appears in the FLEXnet log file. It is benign and should not interfere with the license server's operation. The message can be safely ignored.