In my experience, this came about because the deployed machine was 'customized' by VMWare. The sysprep had caused the new machine to have a new SID. I ran into further issues with certificates as well:
A specified logon session does not exist. It may already have been terminated.
(Exception from HRESULT: 0x80070520)
Annoyingly enough, this came across on the second deploy of a machine, as the first had failed to customize and ended with the same SID.