Were you able to resolve this? If so, please advise. We are implementing SCSM 2012 SP1 w/ Update Rollup 2 and are experiencing the same issue.
Failed to initialize the AppDomain:ReportServer_MSSQLSERVER_0
Exception: System.Web.HttpException
Message: Could not load file or assembly 'ReportingServicesWebServer, Version=11.0.0.0, Culture=neutral, PublicKeyToken=89845dcd8080cc91' or one of its dependencies. Failed to grant permission to execute. (Exception from HRESULT: 0x80131418) (C:\Program
Files\Microsoft SQL Server\MSRS11.MSSQLSERVER\Reporting Services\ReportServer\web.config line 14)
StackTrace: at System.Web.Compilation.BuildManager.ReportTopLevelCompilationException()
at System.Web.Compilation.BuildManager.EnsureTopLevelFilesCompiled()
at System.Web.Compilation.BuildManager.CallAppInitializeMethod()
at System.Web.Hosting.HostingEnvironment.Initialize(ApplicationManager appManager, IApplicationHost appHost, IConfigMapPathFactory configMapPathFactory, HostingEnvironmentParameters hostingParameters)
at System.Web.Hosting.HostingEnvironment.Initialize(ApplicationManager appManager, IApplicationHost appHost, IConfigMapPathFactory configMapPathFactory, HostingEnvironmentParameters hostingParameters)
at System.Web.Hosting.ApplicationManager.CreateAppDomainWithHostingEnvironment(String appId, IApplicationHost appHost, HostingEnvironmentParameters hostingParameters)
at System.Web.Hosting.ApplicationManager.CreateAppDomainWithHostingEnvironmentAndReportErrors(String appId, IApplicationHost appHost, HostingEnvironmentParameters hostingParameters)
InnerException: System.Configuration.ConfigurationErrorsException
Message: Could not load file or assembly 'ReportingServicesWebServer, Version=11.0.0.0, Culture=neutral, PublicKeyToken=89845dcd8080cc91' or one of its dependencies. Failed to grant permission to execute. (Exception from HRESULT: 0x80131418) (C:\Program
Files\Microsoft SQL Server\MSRS11.MSSQLSERVER\Reporting Services\ReportServer\web.config line 14)
StackTrace: at System.Web.Configuration.CompilationSection.LoadAssemblyHelper(String assemblyName, Boolean starDirective)
at System.Web.Configuration.CompilationSection.LoadAssembly(AssemblyInfo ai)
at System.Web.Configuration.AssemblyInfo.get_AssemblyInternal()
at System.Web.Compilation.BuildManager.GetReferencedAssemblies(CompilationSection compConfig)
at System.Web.Compilation.BuildProvidersCompiler..ctor(VirtualPath configPath, Boolean supportLocalization, String outputAssemblyName)
at System.Web.Compilation.ApplicationBuildProvider.GetGlobalAsaxBuildResult(Boolean isPrecompiledApp)
at System.Web.Compilation.BuildManager.CompileGlobalAsax()
at System.Web.Compilation.BuildManager.EnsureTopLevelFilesCompiled()
InnerException: System.IO.FileLoadException
Message: Could not load file or assembly 'ReportingServicesWebServer, Version=11.0.0.0, Culture=neutral, PublicKeyToken=89845dcd8080cc91' or one of its dependencies. Failed to grant permission to execute. (Exception from HRESULT: 0x80131418)
StackTrace: at System.Reflection.Assembly._nLoad(AssemblyName fileName, String codeBase, Evidence assemblySecurity, Assembly locationHint, StackCrawlMark& stackMark, Boolean throwOnFileNotFound, Boolean forIntrospection)
at System.Reflection.Assembly.InternalLoad(AssemblyName assemblyRef, Evidence assemblySecurity, StackCrawlMark& stackMark, Boolean forIntrospection)
at System.Reflection.Assembly.InternalLoad(String assemblyString, Evidence assemblySecurity, StackCrawlMark& stackMark, Boolean forIntrospection)
at System.Reflection.Assembly.Load(String assemblyString)
at System.Web.Configuration.CompilationSection.LoadAssemblyHelper(String assemblyName, Boolean starDirective)
InnerException: System.Security.Policy.PolicyException
Message: Execution permission cannot be acquired.
StackTrace: at System.Security.SecurityManager.ResolvePolicy(Evidence evidence, PermissionSet reqdPset, PermissionSet optPset, PermissionSet denyPset, PermissionSet& denied, Boolean checkExecutionPermission)
at System.Security.SecurityManager.ResolvePolicy(Evidence evidence, PermissionSet reqdPset, PermissionSet optPset, PermissionSet denyPset, PermissionSet& denied, Int32& securitySpecialFlags, Boolean checkExecutionPermission)