I made some progress.
I used this syntax to store the password:
condor_store_cred add -u accountname@computername
With smartcard disabled, jobs run and I observe this in StarterLog.slot1:
About to exec C:\Windows\System32\cmd.exe /c echo hello
Running job as user condor1
Create_Process succeeded, pid=4264
Then, after enabling smartcard, jobs go idle and I see this in the same log:
init_user_ids: LogonUser failed with NT Status -2146892994
Could not initialize user_priv as "igskolcwws063\condor1".
Make sure this account's password is securely stored with condor_store_cred.
ERROR: Failed to determine what user to run this job as, aborting
Failed to initialize JobInfoCommunicator, aborting
Unable to start job.
In the Windows Security log:
Account For Which Logon Failed:
Security ID: NULL SID
Account Name: condor1
Account Domain: IGSKOLCWWS063
Failure Reason: Smartcard logon is required and was not used.
Sub Status: 0xc00002fa
Caller Process ID: 0x1760
Caller Process Name: C:\condor\bin\condor_starter.exe
It appears the smartcard registry setting is affecting even the local accounts