The issue may stop temporarily if an Administrator logs into the Hyper-V host and runs the following command:

gpupdate /force
This issue occurs because the NT Virtual Machine\Virtual Machines special identity does not have the Log on as a Service right on the Hyper-V host computer. 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.

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