This is a fairly new deployment. When I first started having this issue, I foundhttp://support.microsoft.com/kb/2779204, which suggests that gpupdate /force will temporarily resolve the issue. That worked for me for several weeks, but no longer. It was always temporary and I had to do it at least once a day, but even that doesn’t work anymore and my Hyper-V guests are stuck. I also suspect if I have a Hyper-V host failure, the guests on the failed system will not come back up on the operational host.
kb2779204 suggest adding NT Virtual Machine\Virtual Machines in the entries for Log on as a Service. I have created a dedicated OU for the virtual hosts (as suggested by the kb article) and moved them to the new OU. I then addedNT Virtual Machine\Virtual Machines in the entries for Log on as a Service, then gpupdate /force and then wait minutes, then hours. It still doesn’t work. I get 2 slightly different depending on which server I initiate the live migration.
If from the server that currently is running the guest (HV1):
Live migration of 'Virtual Machine vg1' failed.
Virtual machine migration operation for 'dc4' failed at migration source 'HV1'. (Virtual machine ID 140C8893-44EC-481B-B8D5-52FCB8D422DC)
The Virtual Machine Management Service failed to establish a connection for a Virtual Machine migration with host 'HV2': General access denied error (0x80070005).
The Virtual Machine Management Service failed to establish a connection for a Virtual Machine migration because the destination host rejected the request: General access denied error (0x80070005).
If from the server attempting to move the guest to (HV2):
Live migration of 'Virtual Machine vg1' failed.
Virtual machine migration operation for 'vg1' failed at migration destination 'HV1'. (Virtual machine ID 140C8893-44EC-481B-B8D5-52FCB8D422DC)
'vg1' Failed to create Planned Virtual Machine at migration destination: Logon failure: the user has not been granted the requested logon type at this computer. (0x80070569). (Virtual machine ID 140C8893-44EC-481B-B8D5-52FCB8D422DC)