Run into this issue when setting up Client certificates authentication for one of the application on Windows Server 2012. In IIS, under SSL Settings, check the Require SSL checkbox, select Require radio button under Client certificates. Ironically, the same setting works fine on Windows Server 2008 server.
I have been searching for the answer on the web and not able to find a solution. Then I started to compare the Certificate Path/Hierarchy and the Certificate Store. I moved one of the certificates from Intermediate to Trusted Root Certificate Authorities and that tame the error. I’m not suggesting moving the certificates around but that what I did on the development environment to ease the error. I would suggest consult with the server Administrator/Security Expert/check the server policy.
Comment/feedback is welcomed.