SCOM SQL Reporting Services – Could not load folder contents

PROBLEM:
I have SCOM (Operations Manager) 2016 and SQL 2016 SP2 for Reporting Services. I have configured Reporting Services and created all groups in SCOM. I have added those groups in SSRS (via SSRS Report Manager URL).

Regular users with permissions (NOT admins) can not list folder contents. They can access reports via direct link or in SCOM console but they can not list them (entire folder). Received ERROR is “Could not load folder contents. You are not allowed to view this folder. Contact your administrator to obtain the necessary permissions“.

SOLUTION:
Install latest CU (currently CU2 for SQL 2016 SP2) for SQL Reporting Services.

ROOT CAUSE:
BUG!!! Bug is also in SQL 2016 SP1 (fixed with latest CU).

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