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tomtreen
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Microsoft Dynamics AX 2012 Upgrade – Using the State Transfer Tool with AX 2009, you can potentially have duplicate records created within table Shadow_DirPartyRelationship 

  This specific issue occurs only when using the state transfer tool in AX 2009. The problem is as follows: We create new records in the Shadow_DirPartyRelationship. The unique index on this references RefRecId. The RefRecId will become the RecId for DirPartyRelationship during the bulk copy in AX 2012.
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You may get message “Failed to create a session; confirm that the user has the proper privileges to log on to Microsoft Dynamics” during an upgrade or in-place upgrade with Microsoft Dynamics AX 2012 

This error message can be a little misleading as it implies that it is related to some security permissions not being configured correctly. In some cases this can be the case, however it can also be a problem with running CIL code. This can especially occur when you are going through the code upgrade steps.