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I have a Magento installation and when I apply a coupon it says.

Discount code "XXXXXX" is not valid.

enter image description here

I've cleared cache, disabled cache, tried to re-index all data but still the issue is there. The log file is also empty.

Is there a way to figure out why this happens?

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I can recommend this extension which changes the error message so that it tells you why the discount could not be applied.

My guess would be something in the "conditions" tab that did not match, since I cannot see a problem with the configuration that you show.

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