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This question is a not duplicate of these existing questions:

• 
  AUTHORITYNetworkService does not exist (question is for Windows Server 2003


• 
  How can I run a process as "NT AuthorityNetworkService"? (this is a scripting question)


• 
  https://stackoverflow.com/questions/34966029/adding-permissions-for-nt-authority-networkservice (this is about adding an NT AUTHORITY principal to an ACL, not selecting a principal in the Find User GUI)

I have a Windows Service configured on different computers:

• A workstation (non-domain) computer (running Windows 10)


• A workstation (non-domain) Windows Server (running Windows Server 2016)


• A domain workstation (running Windows 10)


• A domain member server (running Windows Server 2016)


• A domain controller (running Windows Server 2016)

In all computers except the domain controller, the services.msc > Service Properties > Log On property sheet's "Select User" pop-up lets me select the NT AUTHORITY built-in principals NETWORK SERVICE and LOCAL SERVICE (aka NT AUTHORITYNetworkService and NT AUTHORITYLocalService).

If I ignore the Search Users window and just type "network service" into the Select User window and click "Check Names" then it's correctly resolved to NETWORK SERVICE:

However, on this Windows Server 2016 domain controller, the Select User popup does not let me specify any local computer name (which makes sense: the local computer's security system becomes the domain security system).

...which means it's not possible to resolve, search for or select NETWORK SERVICE or LOCAL SERVICE:

When I type it in directly into the Log On tab then I get this error:

The account name is invalid or does not exist, or the password is invalid for the account name specified.

You need to add "Built-in security principal" to your Object Types when doing this on the Domain Controller. As it is, you're only searching for User and Service Account Object Types.

Based on your final screenshot, you left out the space in the account name. Try Local Service instead.

If that doesn't work, you can do it on the command line as shown here, I would write this as:

sc config ServiceName obj= "NT AUTHORITYLocal Service" password= ""

Note that in the command line version either LocalService or Local Service is acceptable, but in the GUI only the latter works. I'm not sure why, but that's the way it is.