it appears to be permission issues
I would try following
1) disable the application and see if SM works okay
2) review application deployment web config etc for least permission if possible.
if problem persists
a) remove application and SM
b) fresh install / configure as needed
c) test ; f server starts fine
d) deploy sample app ; test its still okay
e) deploy the application ; test ; if works es expected
f) if it still complains application gets the blame not SM