SSO Policy server fails to recognize the correct directory server type being registered while executing "smldapsetup" command during Policy store setup.
Executing "smldapsetup ldgen -fsample.ldif" during the policy store setup creates a 0KB output sample.ldif file.
This is identified to be a defect in version 12.7. SE is working on a fix.
Defect # DE313845 - For Windows, fix is yet to be released.