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Running Windows 2012 R2 Datacenter, with Hyper-V role installed, domain joined, domain account is both a local admin and a hyper-v admin.

If I try to create a new virtual machine (either via UI, or powershell) I get the following error: 

The Hyper-V Virtual Machine Management service encountered an unexpected error: This user isn't allowed to sign in to
this computer. (0x80070531).

This seems very odd to me since I'm not doing this remotely. Does anyone have any clues as to what is going on? (as a google/bing/duckduckgo search didn't return anything)

I've tried removing and reinstalling the Hyper-V Role (with required reboots), but the error persists.

David B Heise
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  • Thoughts: What account is the Hyper-V VMM service running as? Host is joined to domain, is the account in question 1 a domain account? If so, what domain groups is it a member of? Since the error relates to permissions, I'm not surprised it persists after reinstall. – blaughw May 16 '15 at 18:29

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