Hyper-V Create Virtual Machine Operation Failure

ISSUE

Purpose
To inform customers about HyperV Create VM operation failure.

Description
Create VM operation fails in the HyperV Installer with an error –
“The Hyper-V Virtual Machine Management service encountered an unexpected error:Logon failure:the user has not been granted the requested logon type at this computer. (0x80070569).”

Cause
The user has not been granted the requested logon type at the computer.

Resolution
To work around this problem, first, identify the Group Policy Object(s) using the output of the gpresult command, which modifies user rights settings. Then, use one of the following methods to rectify the issue:

Method 1
Place the computer account for the Hyper-V Host in an Organizational Unit (OU) that have no policies applied, that manage user rights, and then execute gpupdate /force command or reboot the computer. This ought to remove the user rights applied by policy and allow user rights defined in the local security policy to take effect.

Method 2
Perform the following steps on the Hyper-V host machine:
1.       Login as a Domain Administrator
2.       From the Server Manager console, install the Group Policy Management feature
3.       After installation, open the GPMC MMC snap-in and browse to the policy that manages User Rights
4.       Edit the policy to include NT Virtual Machine\Virtual Machines in the entries for Log on as a Service
5.       Exit the policy editor and initiate a gpupdate /force on the Hyper-V host computer to refresh policy. (You may need to wait several minutes for Active Directory replication to occur).
 
Third-Party Sources
N/A

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