During a recent implementation for a client, when their PMs were trying set Baseline 0 for their newly created projects, were receiving the following error.
Now, they were using an Enterprise template to create their projects. They were all in the default Project managers group, and no changes have been made to the default groups/categories. They had the permissions to Set Protected Baseline (baseline 0-5), and were not denied anywhere. The Administrators could set baseline in the same scenario.
So after spending some good amount of time trying to tweak security, still no luck. So, started suspecting the template itself, and tried using a newly created template.
And what do you know, the problem went away. The PMs are able to save their baselines now. We are still investigating the problem with the old template, but thought this might help anybody who has similar issue.