The issue appears to be related to Windows updates KB3000850 and KB299261. We’ll try to resolve the issue without uninstalling the updates and if it doesn’t help we’ll uninstall the updates as it seems to be a sure workaround for this issue.

Solution 1: Set the value of the ProtectionPolicy registry entry to enable local backup of the MasterKey

To address this problem we need to edit a registry entry to enable local backup of the MasterKey instead of requiring a RWDC. To do this:

Solution 2: Uninstalling the updates KB2992611 and KB3000850

Since the problem revolves around the Microsoft updates KB2992611 and KB3000850 if Solution 1 does not help we can uninstalled these updates and disable them from being installed back automatically. The following steps tell us how to go about the process:

FIX: Credential Manager Error 0x80070057 “the parameter is incorrect"Fatal Error Occurred while Creating an SSL Client Credential in Event ViewerFix: VMware Workstation and Device/Credential Guard are not CompatibleFix: Disabled by Administrator, Encryption Policy, or Credential Storage How to Fix Credential Manager Error 0x80090345 - 74