ADFS Error : The AD FS auditing subsystem could not register itself with the system. The auditing privilege is not held.

The issue will araise the account doesnt have audit permission to log audit events.

To Resolve
To grant a domain principal the Generate Security Audits privilege:

After you identify this account,
click Start, point to Administrative Tools, click
Local Security Policy, and then click Local Policies.
Click User Rights Assignment.
In the details pane, right-click Generate Security Audits, and then click Properties.
Add the account.

Refer TechNet Article

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