oops, you do not have sufficient permissions

Any seen this?

New user creates an account, is sent an email with a link t create a password, then when they create the password and then login, t gives the “oops, you don’t have sufficient permissions” error message, yet the account is created and at that point the new user is actually logged in.

video: https://www.dropbox.com/s/p9hjo5sswdkdfnr/memberpermissions.mov?dl=0