SCOM agent less monitoring access denied

Today I was facing and error with monitoring agentless servers. The agent proxy was getting access denied to event logs. In my environment the health services run under the local system account.
I added the server account to administrators on the agentless server but it did not help.
I had to change the default action account profile in console for the server to run under another action account instead of the local system action account.
Then everything was peachy…