Hi,
Windows Live ID is now called "Microsoft Account". From below two posts, it seems a Client OS feature, which is not supported on Server systems.
https://social.technet.microsoft.com/Forums/en-US/e440b40c-5d77-4da9-8211-be79d05d5f78/how-do-i-enable-users-login-to-windows-server-2016-with-their-microsoft-accounts
https://social.technet.microsoft.com/Forums/windowsserver/en-US/5e5260fa-0a90-4c66-b0ab-cb4e825c8d95/server-2012-and-microsoft-account
But I also found below article, which indicated that Microsoft Account is applies to Windows 8.1, Windows Server 2012 R2, Windows Server 2012, Windows 8. Maybe you can have a try to see if it works on server 2012 and 2016.
https://learn.microsoft.com/en-us/previous-versions/windows/it-pro/windows-server-2012-r2-and-2012/jj884082(v=ws.11)
Identity Federation and Federation Gateway should be still valid on windows server 2012/2016, but Active Directory Rights Management Services (AD RMS) is no longer in active development, and for the latest capabilities customers should consider migrating to Azure Information Protection
For information on migrating to Azure Information Protection from AD RMS without having to re-protect your content see the Azure Information Protection migration documentation.
Hope the information can help you.
Thanks,
Eleven
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