First time I ran in to this problem was in my new virtual test environment. The management point failed to install and MPSetup.log was reporting the WebDav settings were not correct. Looking at them in IIS Manager everything looked just like it should, everything was setup according to the prerequisite document on Technet.
I had to find the problem somewhere else, and I did. Apparently the settings in the GUI didn’t get written to Webdav_schema.xml, and someone was kind enough to document how to change them, so here is the link for future reference.
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