The FAIL: Permission denied error is mainly due to the sapuxuserchk file permission and ownership. You can list the sapuxuserchk by executing this command as root.
find / -name sapuxuserchk -exec ls -al {} \;
What I did to fix to overcome this issue:
Updated the sapstartsrv file according to the SAP note 1656036 (You can skip this if the patch level is recent)
Modified the ownership and permission of ALL the sapuxuserchk files as suggested in the SAP note 927637
At this point I was able to continue without setting the parameter service/protectedwebmethods but during the PreProcessing phase I faced an issue related to sapcontrol web services, for that I set the parameter service/protectedwebmethods = DEFAULT in the DEFAULT profile.
You could try the options mentioned in this SAP note 1563660 - sapcontrol, user authorization issues (SUM)
If you are unable to continue further then set the parameter in the DEFAULT profile with the values suggested in the above note and restart SUM.
IMPORTANT: You need to restart the sapstartsrv process after modifying or setting the parameter. I also removed the stream files present in the /tmp file system every time I restarted the sapstartsrv process.
Reagan