We’ve got this error while creating a new VM guest using SCVMM 2012 sp1:
Error (12700) VMM cannot complete the host operation on the server because of the error: The operation failed.
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). Unknown error (0x8000)
Recommended Action Resolve the host issue and then try the operation again.
We found the the reason for this is that we had GPO that set the right for “logon as service”, on Hyper-v 2012 we need to add the “NT Virtual Machine\Virtual Machine” user to this logon right.
in order to do so perform the following steps on the Hyper-V host machine:
- Logon as a Domain Administrator
- Install the Group Policy Management feature from the Server Manager console
- After installation, open the GPMC MMC snap-in and browse to the policy that manages User Rights
- Edit the policy to include NT Virtual Machine\Virtual Machines in the entries for Log on as a Service
- Close 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).
- remove the Group Policy Management feature from the Server Manager console.
to read more about this error follow this Microsoft KB article