SYSVOL replication issue, the processing of Group Policy failed.

What:

Domain Controller on Windows 2008 R2

Problem:

Error event is logged, after running gpupdate I get the following error message:
The processing of Group Policy failed. Windows attempted to read the file \\domain.local\SysVol\domain.local\Policies\{3FA16EAF-3A76-4972-88CE-1BA2435CA08E}\gpt.ini from a domain controller and was not successful. Group Policy settings may not be applied until this event is resolved. This issue may be transient and could be caused by one or more of the following:
a) Name Resolution/Network Connectivity to the current domain controller.
b) File Replication Service Latency (a file created on another domain controller
has not replicated to the current domain controller).
c) The Distributed File System (DFS) client has been disabled.

Solution:

SYSVOL share has become corrupt and you need to pull a new copy from the other DCs.
Browse on every DC to  \\domain.local\sysvol\domain.local\Policies one of them should have policies missing.
After you found problematic server log on to it and open up regedit.

1. Browse to HKEY_LOCAL_MACHINE\System\CurrentControlSet\Services\NtFrs\Parameters
2. Create new DWORD value "Enable Journal Wrap Automatic Restore" and set it to 1
3. Stop/start the ntfrs service (net stop/start ntfrs)
4. Note the entries in the FRS log. (13560, 13520)
5. Change the value "Enable Journal Wrap Automatic Restore" to 0
6. Wait for replication to complete (13553, 13554)
7. Note success (13516 - no longer preventing from becoming DC)
8. Note other servers are now seeing event ID 13509 (NtFrs once again has connection)

Source