Ben Armstrong (MSFT Senior PM Lead with Hyper-V), aka The Virtual PC Guy, tweeted this morning about an issue where starting virtual machines on a Windows Server 2012 or Hyper-V Server 2012 host might fail with the following error:
Error 0×80070569 (‘VM_NAME’ failed to start worker process: Logon Failure: The user has not been granted the requested logon type at this computer.)
Live Migration of a virtual machine on the same hosts might also fail with this message:
Failed to create Planned Virtual Machine at migration destination: Logon failure: the user has not been granted the requested logon type at this computer. (0×80070569)
It’s one of those sometimes it’s happening and sometimes it’s not problems. Microsoft says that running GPUpdate /Force might temporarily resolve the issue.
The issue appears to be caused by a group policy issue that is preventing NT Virtual Machine\Virtual Machines from having the right to Log on as a Service. According to Microsoft:
Usually, the Virtual Machine Management Service (VMMS) replaces this user permission at every Group Policy refresh to ensure it is always present. However, you may notice that Group Policy refresh does not function correctly in certain situations.
Microsoft is working on the problem. They have posted a number of workarounds in the KB article that you can use if you are experiencing the issue. Please don’t be a moron: only apply a workaround if you are experiencing the problem.