The DHCP service may lose authentication if the DHCP credentials are not configured on the domain controller on which the DHCP Server service and DNS services are installed. This is not a recommended security configuration. Credentials for Dynamic DNS registrations may be configured using the command line "netsh dhcp server set dnscredentials" or via the DHCP Administrative tool. Additionally, the DHCP service may fail to see a directory server for authorization, which can result in event ID 1059. This can occur if the missing or incorrect service principal names (SPNs) cause delegation to fail. It is recommended to check the required service principal names (SPNs) and ensure that they are not missing or incorrect.
References: