To recover from this situation:
Use explorer to open the following location C:\Users\Default\AppData\Local\Microsoft\Exchange Server\v14.
For each file in this folder identified in the matching event (Configuration14400_100.sqm in our example), open its Properties.
Select the Security Tab.
Check the “Include inheritable permissions from this object’s parent” checkbox.
Repeatedly click Ok to close all the dialogs.
From an administrative command prompt, run IISRESET /noforce
Note: you may have to run this command several times until it concludes successfully.