If you use a Folder Redirection Group Policy (of My Documents, Start Menu, App Data, etc.) with your Server and Windows 7 desktops, you may have noticed a problem after installing the latest (June 14, 2016) updates from Microsoft. For some reason, the GPO reports an error in RSOP.msc and reverts back to storing these folders in C:\Users.
After days of research, trial and error (rebooting, removing and rejoining the client to the domain, etc.) and a lot of frustration I finally tracked down the issue (in my case) to two updates:
KB3159398 – MS16-072: Description of the security update for Group Policy: June 14, 2016
KB3161561 – MS16-075 and MS16-076: Description of the security update for Windows Netlogon and SMB Server: June 14, 2016
After uninstalling these two updates and Clearing the Windows Client Side Cache things magically returned to normal.
I hope this helps and others can be spared from going through the same level of frustration,
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