Troubleshooting Control Manager Operations Error 7006

Recently a number of servers in my workplace started to show up with the following errors,

Log Name: System
Source: Service Control Manager
Event ID: 7006
Level: Error
The ScRegSetValueExW call failed for Start with the following error: Access is denied.

A simple google search finds plenty of talk about it with a lot of discussion around anti-virus software. Fair enough but it seems that it was not clear on how to identify the underlying cause of the error. A tip for those who are getting this error is to check your system log around the time of the error messages and see what the Service Control Manager was doing around the times of the errors.

In my case the following information level events appeared immediately before the errors,

Log Name: System
Source: Service Control Manager
Event ID: 7036
Level: Information
The Microsoft Network Inspection service entered the running state.

and immediately after,

Log Name: System
Source: Service Control Manager
Event ID: 7036
Level: Information
The Microsoft Network Inspection service entered the stopped state.

So I had my culprit which in my case was Microsoft System Endpoint Protection (or Microsoft Security Essentials). Still working on the resolution.

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