This error often means that server and client versions mismatch. If that's the case, lmx-serv.log or LM-X server window will say FAIL: New client version is newer than the license server version. Please update license server to a more recent version. ...
The floating license server can produce a log file that details activity such as client connections or disconnections, license checkout/checkin, and other server activity. Extended logging can be enabled as follows: Find the "LOG_FORMAT = NORMAL" ...
Yes, the license server can be deployed on a client computer, but in this case please make sure this computer is being in the same network with the other computers that will use your license.