This is a PSA for anyone having issues connecting/ setting up the User-ID Agent program on a Windows server.
After installing the correct User-ID Agent from Paloalto's support site, you need to make sure you've set correct security/ access settings for the user you will bind to the agent. I found these instructions pretty easy to follow.
Then, make sure you pay attention to the port number you assign the agent. You will need to make an inbound rule in your firewall advanced settings on Windows Server. Go to Windows Defender Firewall with Advanced Security, Inbound Rules, then click New Rule. Select the port rule option, fill in the correct port, and you should have a green connected light now instead of a red one.
Hope this helps anyone struggling with the User-ID Agent. I spent way too much time trying to figure this out.
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