Virtual Machines Fail to Start with Error 0x80070569

We have received some reports from people who are seeing an error 0x80070569 when they try to start or live migrate virtual machines on Windows Server 2012.  After some investigation we have found that this is usually caused by the use of a custom group policy setting in their domain.

We have written a KB article that explains how to work around this issue if you see it in your environment: