The most likely reason for this issue to occur is higher number of groups in the Active Directory and the kerberos token to be very long(in size). To resolve this issue, perform the following steps:
(1) Login to the Studio without SSO enabled.
(2) From TDV Studio > navigate to Administration tab > Configuration panel > Server > Web Services Interface > Communications - HTTP, HTTP/S. Increase the value for "Header Buffer Size (On Server Restart)" to 8192 or higher for both HTTP and HTTPS. (default value is 4096)
Please note: This size of the buffer for HTTP/ HTTPS headers is per connection. Arbitrarily increasing the value to a higher number may cause performance issue due to increased memory consumption. Monitor the TDV Server memory and increase if required.
(3) Restart TDV Server for the changes to take effect.
(4) Re-login to Studio with SSO option enabled. The new value is seen updated in the configuration 'Header Buffer Size'.