RHEV-M installer fails with error "Login failed for user 'sa'"

Solution Verified - Updated -

Issue

Fresh install of RHEV-M on Win2k8 R2 fails.

The RHEV Manager service is not running after installation.

On the installation logs can be seen the following output:

server - .\SQLEXPRESS
dbname - rhevm
Creating DB ...
Done.
create tables ...
Done.
create views ...
Done.
creating the Stored Procs .....
Msg 4060, Level 11, State 1, Server MANAGER\SQLEXPRESS, Line 1
Cannot open database "rhevm" requested by the login. The login failed.
Msg 18456, Level 14, State 1, Server MANAGER\SQLEXPRESS, Line 1
Login failed for user 'sa'.

Environment

Red  Hat Enterprise Virtualization (RHEV) v.2.2

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