“The processing of Group Policy failed. Windows could not apply the registry-based policy settings for the Group Policy object LocalGPO. Group Policy settings will not be resolved until this event is resolved. View the event details for more information on the file name and path that caused the failure.”
Go to “C:\Windows\System32\GroupPolicy\Machine\”
Rename Registry.pol to Registry.pol.bak
Open an elevated command prompt
Type in gpedit.msc
Change “Computer Configuration\Administrative Templates\Control Panel\Personalization\Force a specific default lock screen and logon image” to FALSE and back to Not Configured (This will rebuild the Registry.pol file).
Return to the elevated command prompt and run gpupdate /force. It should ask to log off.
Log back on and run gpupdate /force again.