Azure Service Fabric - Windows security on Standalone - Timeout

while trying to deploy new secured Service Fabric cluster (using Windows Security) i got the following error for all the nodes:

Timed out waiting for Installer Service to complete for machine SF1.mydomain.local. Investigation order: FabricInstallerService -> FabricSetup -> FabricDeployer -> Fabric

 When trying the same configiuration file, but without the security section, or with Certificate based security - everything worked perfectly.

Microsoft's engineer gave me a solution:

Replace your FQDN in the nodes configuration (the "iPAddress" property) to NetBios hostName.

This has solved the issue.