I am having security issues with lab management and standard environments.
I have TFS2012 update 2 installed in my domain \"DevDomain\". I have a separa
Have you configured your test controller for using lab service account?
If not try this:

Use account with appropriate permissions.
This account will be used to access to the build drop location, see
C:\Program Files (x86)\Microsoft Visual Studio 11.0\Common7\IDE\QTController.exe.config
and search for "UseLabServiceAccountToAccessBuildDirectory".