To fix this Access is denied error, add following registry and restart the server.
HKEY_LOCAL_MACHINESYSTEMCurrentControlSetControlTerminal Server
Name: IgnoreRegUserConfigErrors
Type: REG_DWORD
Value: 1
HKLMSystemCurrentControlSetControlLsaKerberosParameters
Name: MaxTokenSize
Type: REG_DWORD
Value: 48000 (Decimal)