SQL Server Failed to Open Loopback Connection – What?

I could not read my error log on one of my local SQL Servers, when I executed the following code:

EXEC sp_readerrorlog

I received the below:

Msg 22004, Level 16, State 1, Line 2 Failed to open loopback connection. Please see event log for more information. Msg 22004, Level 16, State 1, Line 2 Error log location not found.

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