Please check the image attached. The server is simply failing to save the right path on windows. (Note: the crucible service in windows is running as "Administrator" account.
It is always important to check the supported platform: https://confluence.atlassian.com/fisheye/supported-platforms-298976955.html and install proper Mercurial client.
I solved it by installing 4.5.3 version of Mercurial and setting Environmental path to the Mercurial bin folder in Windows.
Below Atlassian KB article help you to configure mercurial with crucible.
https://confluence.atlassian.com/fisheye/mercurial-client-298976883.html
https://confluence.atlassian.com/fisheye/mercurial-298976893.html
Thanks,
Prashant
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My question was about server failing to set the path of the hg.exe path in configuration page and not about adding repository. However, thanks for your time and consideration.
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