i often get a similar error message when i create a new linked server, where i forgot to set the rpc and rpc out to true;
Executed as user: MyDomain\sqlmaster. Server 'SSASLocal' is not configured for RPC. [SQLSTATE 42000] (Error 7411). The step failed.
so in my case, i have to make sure both rpc and rpc out are set to true in my linked server, and that the distributed trnasaction coordinator service was running.
I read that you are leaving it to false, and disabling the DTC,a dn it works then?
that's kind of opposite of my experience.
Lowell