Beacons in FlexNet Manager Suite require the IIS website to use the default name used by IIS ("Default Web Site"). If your website uses a custom (non-default) name, you may receive the error below. The error occurs when configuring the "Local web server" view of the beacon server UI.
Solution
Change the website name back to the original default name, Default Web Site.
Once updated, the error will no longer display when saving.