SharePoint 2013 configuration Wizard - Step 3 Issue

I am trying to create a SharePoint Farm for production environment. DB and App servers are setup properly but when I add another computer into the Farm (as Web Front), during the configuration wizard I see error at step 3. I am using the same credentials fr DB and Farm account as used in App server.

Environment Details:

Windows Server 2012 R2

SQL Server 2012

Here are the exception details: Cnfiguration Failed - Failed to connect to Configuration Database

12/03/2014 08:07:14  1  INF                          Not running in high contrast, so we will paint the background with our trademarked image
12/03/2014 08:07:14  14  ERR                          Task configdb has failed with an unknown exception 
12/03/2014 08:07:14  14  ERR                          Exception: System.ArgumentException: Value does not fall within the expected range.
   at Microsoft.Web.Administration.Interop.AppHostWritableAdminManager.CommitChanges()
   at Microsoft.Web.Administration.Configuration.CommitChanges()
   at Microsoft.Web.Administration.ConfigurationManager.CommitChanges()
   at Microsoft.Web.Administration.ServerManager.CommitChanges()
   at Microsoft.SharePoint.Administration.SPIisServerManager.CommitChanges(ApplyChanges applyChanges)
   at Microsoft.SharePoint.Administration.SPIisProvisioningAssistant.ProvisionApplicationPool(String name, SecurityIdentifier sid, String password, SPIisApplicationPoolSettings settings)
   at Microsoft.SharePoint.Administration.SPIisManager.ProvisionApplicationPool(String name, SecurityIdentifier sid, SecureString password, SPIisApplicationPoolSettings settings)
   at Microsoft.SharePoint.Administration.SPIisWebServiceApplicationPool.ProvisionLocal(SPIisWebServiceApplicationPoolProvisioningOptions options)
   at Microsoft.SharePoint.Administration.SPIisWebServiceApplication.ProvisionApplicationInstance()
   at Microsoft.SharePoint.Administration.Claims.SPSecurityTokenServiceApplication.ProvisionLocal(SPServiceInstance serviceInstance)
   at Microsoft.SharePoint.Administration.SPIisWebServiceInstance.Provision()
   at Microsoft.SharePoint.Administration.SPFarm.Join(Boolean skipRegisterAsDistributedCacheHost)
   at Microsoft.SharePoint.PostSetupConfiguration.ConfigurationDatabaseTask.CreateOrConnectConfigDb()
   at Microsoft.SharePoint.PostSetupConfiguration.ConfigurationDatabaseTask.Run()
   at Microsoft.SharePoint.PostSetupConfiguration.TaskThread.ExecuteTask()
12/03/2014 08:07:14  14  INF                          Entering function Common.BuildExceptionMessage
12/03/2014 08:07:14  14  INF                            Entering function StringResourceManager.GetResourceString
12/03/2014 08:07:14  14  INF                              Resource id to be retrieved is ExceptionInfo for language English (United States)
12/03/2014 08:07:14  14  INF                              Resource retrieved id ExceptionInfo is An exception of type {0} was thrown.  Additional exception information: {1}
12/03/2014 08:07:14  14  INF                            Leaving function StringResourceManager.GetResourceString
12/03/2014 08:07:14  14  INF                          Leaving function Common.BuildExceptionMessage
12/03/2014 08:07:14  14  INF                          Entering function Common.BuildExceptionInformation
12/03/2014 08:07:14  14  INF                            Entering function Common.BuildExceptionMessage
12/03/2014 08:07:14  14  INF                              Entering function StringResourceManager.GetResourceString
12/03/2014 08:07:14  14  INF                                Resource id to be retrieved is ExceptionInfo for language English (United States)
12/03/2014 08:07:14  14  INF                                Resource retrieved id ExceptionInfo is An exception of type {0} was thrown.  Additional exception information: {1}
12/03/2014 08:07:14  14  INF                              Leaving function StringResourceManager.GetResourceString
12/03/2014 08:07:14  14  INF                            Leaving function Common.BuildExceptionMessage
12/03/2014 08:07:14  14  INF                          Leaving function Common.BuildExceptionInformation
12/03/2014 08:07:14  14  ERR                          An exception of type System.ArgumentException was thrown.  Additional exception information: Value does not fall within the expected range.
System.ArgumentException: Value does not fall within the expected range.
   at Microsoft.Web.Administration.Interop.AppHostWritableAdminManager.CommitChanges()
   at Microsoft.Web.Administration.Configuration.CommitChanges()
   at Microsoft.Web.Administration.ConfigurationManager.CommitChanges()
   at Microsoft.Web.Administration.ServerManager.CommitChanges()
   at Microsoft.SharePoint.Administration.SPIisServerManager.CommitChanges(ApplyChanges applyChanges)
   at Microsoft.SharePoint.Administration.SPIisProvisioningAssistant.ProvisionApplicationPool(String name, SecurityIdentifier sid, String password, SPIisApplicationPoolSettings settings)
   at Microsoft.SharePoint.Administration.SPIisManager.ProvisionApplicationPool(String name, SecurityIdentifier sid, SecureString password, SPIisApplicationPoolSettings settings)
   at Microsoft.SharePoint.Administration.SPIisWebServiceApplicationPool.ProvisionLocal(SPIisWebServiceApplicationPoolProvisioningOptions options)
   at Microsoft.SharePoint.Administration.SPIisWebServiceApplication.ProvisionApplicationInstance()
   at Microsoft.SharePoint.Administration.Claims.SPSecurityTokenServiceApplication.ProvisionLocal(SPServiceInstance serviceInstance)
   at Microsoft.SharePoint.Administration.SPIisWebServiceInstance.Provision()
   at Microsoft.SharePoint.Administration.SPFarm.Join(Boolean skipRegisterAsDistributedCacheHost)
   at Microsoft.SharePoint.PostSetupConfiguration.ConfigurationDatabaseTask.CreateOrConnectConfigDb()
   at Microsoft.SharePoint.PostSetupConfiguration.ConfigurationDatabaseTask.Run()
   at Microsoft.SharePoint.PostSetupConfiguration.TaskThread.ExecuteTask()
12/03/2014 08:07:14  14  INF                          Entering function Common.BuildExceptionInformation

I have spent couple of days Googling the issue but no success so far. Any help!

The following two lines from log viewer:

Attempting to give SE_ASSIGNPRIMARYTOKEN_NAME privilege to application pool user DOMAIN\sp.admin 
An exception occured while committing IIS configuration changes: Value does not fall within the expected range. 

I have checked that sp.admin have full admin rights on all the machines in the farm.