Applying a Microsoft Security Configuration Wizard policy fails with error 0x80070005 - Access is Denied

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Attempting to apply a policy created with the Microsoft Security Configuration Wizard (SCW) to harden your network server security fails with the following error:

0x80070005: Error configuring C:\WINDOWS\security\msscw\ConfigureFiles\Services.inf Access is denied

Symptoms

This can occur due to blocking by certain 3rd-party anti-virus real-time scanner products.

Cause

To resolve this issue, completely disable or uninstall 3rd-party anti-virus product before applying your SCW policy. After the policy is applied, re-enable real-time scanning and/or re-install the 3rd-party anti-virus scanner product.