Earlier today I discovered a SQL Agent job that was failing with the error “Non-SysAdmins have been denied permission to run DTS Execution job steps without a proxy account. The step failed.”
It turns out that the person who set up the job did not have sysadmin rights.
I changed the owner of the job to a sysadmin user, and now it works 🙂
Hope this works for anyone else who gets this error.