Server 2012 Windows 8 Logon failure: User not granted logon type
Logon failure: the user has not been granted the requested logon type at this computer Server 2012 Windows 8
In server 2012 and Windows 8 you may encounter a similar error that will not let you do simple tasks with windows features and programs. In our case it was starting a virtual machine in Hyper-V. It also affects SharePoint and Exchange as well.
To remedy this issue you must modify a local group policy. Open up gpedit.msc. Drill down Computer Configuration\Windows Settings\Security Settings\Local Policies\User Rights Assignment. Under Log on as batch job click the add user or group. Add the account you are currently logged in as. If the button is greyed out then you need to change this in the “Default Domain Policy” or “Default Domain Controllers Policy” as it is set to Deny log on as a batch job and overrides local policy. Once completed apply and open a command prompt. Run gpupdate /force. Once this is complete you will no longer get the error.
This problem will reoccur often. Each time you see it, you must remove yourself, apply, add yourself again, apply again, run gpudate /force.
Microsoft is aware of the issue and hopefully working on a resolution as the workaround is rather inconvenient at times.