I was busy configuring the User Profile Service through the link “Setup My Sites”. I couldn’t change anything on that page as it listed
NT Authority\Authenticated Users; c:0(.s|true; in the box for “Read Permission Level” and was already printing the error message
No exact match was found. using the peoplepicker through the little “Browse” icon showed the error
An error has occurred in the claim providers configured from this site collection.
If you run into this error then you can try 2 things:
1) Configure an Alternate Access Mapping for Central Admin
2) Point your webbrowser directly at the server instead of the FQDN that resolves to it
Assume Central Admin running on port 555 of server xxxSP01 and DNS is configured to resolve portal.contoso.com to the server. When you access Central Admin through http://portal.contoso.com:555, then you’ll encounter this problem. If you use http://xxxSP01:555, then there’s no problem.