Question about "Last Known Good Configuration"

I had an install, took over two hours, much slower than it should have, and eventually failed due to a server reboot being needed by SQL. The install failed again because some files had been partially upgraded. Restored and tried again, this time the install failed because during the previous failed install a user had been created in the database, I had to delete the user from SQL.  4th time through and things looked to be going better until I lost my remote connection the server. Called the office to get reconnected to the server, the server was still booting up and eventually blue screened, it did this twice. Used last known good config.  That got us back into the server but the server still crashed and blue screened when we tried installing again. I had their IT people look that the server, they called back saying it was AVG that was causing the problem, I was told that all the server logs pointed to AVG being the problem. They uninstalled AVG and my install then went fine. Moving on to the workstations I discovered that all the network drives were disconnected. I called their IT people who said that the Domain Controller Active Directory was down, they are saying that the “Last Known Good Configuration” rolled the server back to March of this year, prior to the new Domain and active directory being set up and that it’s all gone. Could "Last Known Good Configuration" do somethign like this??