Symptoms
Assume that you install Microsoft SQL Server on Windows 10, and you enabled the FILESTREAM feature at the instance level and created databases that have FILESTREAM containers. After you install Windows 10 Creators Update, the FILESTREAM feature may stop working. For example, you may receive the "FILESTREAM feature is disabled" error message in one of the following scenarios:
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When you restart a SQL Server that contains a database that has FILESTREAM containers.
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When you try to bring a database that has FILESTREAM containers online.
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When you try to create a database that has FILESTREAM containers.
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When you try to restore a backup that has FILESTREAM containers.
Resolution
Windows 10
This issue was first fixed in May 2017 Security Update 4016871 for Windows 10. This update will be downloaded and installed automatically from Windows Update. To get the stand-alone package for this update, go to the Microsoft Update Catalog website. After this update is installed, the build number will be either 15063.296 (for all Windows 10 devices except Mobile and IoT) or 15063.297 (for Mobile and IoT).
SQL Server 2016 Service Pack 1
This fix is also included in Cumulative Update 4 for SQL Server 2016 Service Pack 1.
About SQL Server 2016 builds
Each new build for SQL Server 2016 contains all the hotfixes and security fixes that were included in the previous build. We recommend that you install the latest build for SQL Server 2016.
Workaround
To work around this issue, use one of the following methods:
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Change the SQL Server service startup account to built-in account LocalSystem.
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Change the SQL Server service startup account to a domain user account that has local administrative credentials on the system.
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If you use virtual account [NT SERVICE\MSSQL$InstanceName] as the service start-up account, make this account a member of the local administrators group.
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Uninstall Creators Update and fall back to the previous Windows build.
Status
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.
References
FILESTREAM issues with SQL Server on Windows 10 Creators Update
Learn about the terminology Microsoft uses to describe software updates.