Upon checking the Event viewer, the system log was filled with the Event ID 1096 as attached below.
As per the Event ID 1096, Windows couldn't apply the registry-based policy settings for the LocalGPO. The first place to check was the Registry.pol file located locally on the computer.
Steps to resolve this issue:
- Delete or rename the registry.pol file under c:\windows\system32\grouppolicy\machine\registry.pol
- Configure any administrative template settings in the local Computer settings GPO. This will re-generate automatically a new registry.pol file.
- Gpupdate /force will run normally without any problem.
For more info about Local GPO and corrupted Registry.pol, please check the below links: