The Security Token Service is not available (SharePoint 2013)

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Error:  The Security Token Service is not issuing tokens
Today I have faced error in Security Token Service. I was consolidating SharePoint farm servers. When I created SQL Server Reporting service application, it showed an error on system settings and managed jobs page.  When I checked ULS logs error was
An exception occurred when trying to issue security token: The content type text/html; charset=utf-8 of the response message does not match the content type of the binding (application/soap+msbin1)
The error logs does not helped me much. Still I was unclear what was happening. Then I enabled verbose logging and scanned GB’s of logs. The error I found was:
SharePoint Installation Claims Error: Failed to create instance of cookie value handler type / handler object
As the error says that it is a claims problem I first checked the SharePoint Security Token Service but the web service was fine. When I browse the web service, the page is rendered without errors.
After that following steps was the check point that I found by going on different blogs
·         Check if Windows Web Services Pool has started
·         Check if "Claims To Windows Token Service" has started
·         Check if IIS checkbox "enable for 32bit Applications" is checked
·         Provisioning the Security Service again
·         Check if the "Claims To Windows Token Service" is running under Local system account
·         Check if in IIS > Windows Authentication "Enable Kernel Mode Authentication " is enabled
I got still the same error. Really it was a tedious task to be find exact cause. The FIPS was the hurdle.
What is FIPS?
FIPS stands for the Federal Information Processing Standards, and is used for the standardization of information, such as FIPS 10-4 for Country Codes or FIPS 5-2 for State Codes.
FIPS 140-2 is a standard that can be tested against and certified so that the server is hardened up to a government standard. Currently, the US is not the only government 

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