GPO won't work after migrating from SBS 2008 to Windows 2012 R2 Standard

I migrated my SBS 2008 server to a windows 2012 R2 standard server. Everything went well with the exception of GPO. I demoted the SBS server a few days ago after transferring all the FSMO roles.
Everything went fine when decommissioning the sbs server.
I noticed that my mapped drives were not connecting after a restart (GPO is setup to connect the mapped drives), so I ran GPUPDATE /force on a computer and on the 2012 server and received:
 
"The processing of Group Policy failed. Windows attempted to read the file \\domain.local\SysVol\domain.local\Policies\{08D687E0-672D-4D67-AFE7-CCCC3699D28D}\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."

what am I missing? Can you please help?