The processing of Group Policy failed with Event ID 1058

We've a Windows 2003 R2 domain, and the target OU has a server running Windows 2008 R2 Standard edition. The GPO linked to this target OU has a WMI query. While I execute gpupdate /force, it applies user policy but failed while processing computer policy settings. Below are the captures of event ID and gpupdate result. Could you please advice what to check?


Event Viewer logs the following event:
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Event ID 1058:

The processing of Group Policy failed. Windows attempted to read the file \\domain.com\sysvol\domain.com\Policies\{A4DD119E-DFA9-42AC-9000-4CC995BB4DD1}\gpt.ini from a domain controller and was not successful. Group Policy settings may not be applied until this event is resolved. This issue may be transient and could be caused by one or more of the following:
a) Name Resolution/Network Connectivity to the current domain controller.
b) File Replication Service Latency (a file created on another domain controller has not replicated to the current domain controller).
c) The Distributed File System (DFS) client has been disabled.

 Detail section of the event:
  ProcessingMode 0
  ProcessingTimeInMilliseconds 2340
  ErrorCode 1240
  ErrorDescription The account is not authorized to log in from this station.  

RESULT of GPUPDATE /Force
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The processing of Group Policy failed. Windows attempted to read the file \\domain.com\sysvol\domain.com\Policies\{A4DD119E-DFA9-42AC-9000-4CC995BB4DD1}\gpt.ini fro
m a domain controller and was not successful. Group Policy settings may not be a
pplied until this event is resolved. This issue may be transient and could be ca
used by one or more of the following:
a) Name Resolution/Network Connectivity to the current domain controller.
b) File Replication Service Latency (a file created on another domain controller
 has not replicated to the current domain controller).
c) The Distributed File System (DFS) client has been disabled.
Computer policy could not be updated successfully. The following errors were enc
ountered:

The processing of Group Policy failed. Windows could not evaluate the Windows Ma
nagement Instrumentation (WMI) filter for the Group Policy object cn={A4DD119E-DFA9-42AC-9000-4CC995BB4DD1},cn=policies,cn=system,DC=domain,DC=com. This could be
caused by RSOP being disabled  or Windows Management Instrumentation (WMI) servi
ce being disabled, stopped, or other WMI errors. Make sure the WMI service is st
arted and the startup type is set to automatic. New Group Policy objects or sett
ings will not process until this event has been resolved.

To diagnose the failure, review the event log or invoke gpmc.msc to access infor
mation about Group Policy results.