Depends on the app you're running as a service. It may not like running in the context of the local system, or it may require interaction with the desktop.
I have tried letting it interact with the desktop and I have used an admin account to run the service. When I look at the properties of the exe that I am trying to run after I try to start the service it says that is was just accessed seconds ago. So I know that it is trying to do something, but it just keeps timing out.
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