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After an e-mail exchange with Claris they provided a fix which might be useful to others. By default the installer extracts to "FileMaker Server 19". However the Setup in that folder won't work if there are any spaces in the path name. To fix the issue move the contents of that folder to somewhere without spaces in the name (for example C:\users\admin\downloads\FMS not C:\users\admin\downloads\FileMaker Server 19). I am amazed and quite annoyed that this simple issue got through testing. I expect better from Claris. However thankfully the fix is simple.

When defining a privilege set, you can set custom privileges for each field. Start by choosing 'Custom privileges…' for Records. Then select a table and choose 'limited…' for Field Access. Then choose 'no access' for each field you don't want the user to see. In addition, you will want to remove these fields from layouts that your user can access. But that's just cosmetics. Only the privilege set settings provide true security.