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Lost all permissions in Windows Server 2012

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I installed a new server for a client 3 months ago.  The new server runs Windows Server 2012 Standard.  Everything was fine until randomly i could not open the Chrome icon on the taskbar.  Error said the following : "windows cannot access the specified device path or file. you may not have the appropriate permission"

I tried to use the control panel but got the same error.  I can, however, using classic shell start menu, right click on control panel and click open to get to it.  If using the start menu i click on control panel the little windows extends and says "empty".  As of note I uninstalled classic shell to no avail.

Trying to run sfc /scannow generates the following error "Windows Resource Protection could not perform the requested operation"

I also cannot open the hosts file, access denied.  I changed ownership and granted all access, still nothing.

In the notification area, the network icon has a red x and says "Connection Status: Unknown" yet internet and network access is uninhibited.

Using the "subinacl /subdirectories c:\*.* /grant=administrator" changed nothing.  

I decided to disable UAC via registry key after which I rebooted and could no longer login.  I received the following error: "The sign-in method you're trying to use isn't allowed.  For more info, contact your network administrator."

In response I attempted to run gpedit and I went to Computer Configuration> Security Settings> Local Policies> User Rights Assignment| and checked the Deny log on locally settings. Only SBS Remote Operators, SBS STS Worker, and Support_38945a0 were listed, none of which are groups that the administrator is a member of.  Also, this led to the discovery that all settings within gpedit are grayed out and cannot be changed.

To fix, I logged in as another user and removed the administrator from the Domain Power Users group which fixed the login issue.  I am unable to perform windows updates.  There are no virus or malware detected by Trend Micro, RogueKiller, TDSSKiller, MalwareBytes, or RKill.

CCleaner did not fix.  

PLEASE HELP!!!



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