GPP file copy issue

I have added a policy using GPP to copy 2 files
One is a text file and the other is a .dotm
Both are supposed to copy to %AppDataDir%\Roaming\Microsoft\Word\STARTUP
During the policy run the .txt file copies without issue but the dotm I keep getting the below error
I don't understand whats going on here. if it has permissions to add the txt file, why not the word file
The testing account I'm using can browse to the share and copy and paste to the word startup folder

Group Policy Object did not apply because it failed with error code '0x80070005 Access is denied.' This error was suppressed.
- <Event xmlns="">
- <System>
  <Provider Name="Group Policy Files" />
  <EventID Qualifiers="34305">4098</EventID>
  <TimeCreated SystemTime="2018-02-06T16:54:11.187920000Z" />
  <Security UserID="S-1-5-18" />
- <EventData>
  <Data> Spec Templates.dotm</Data>
  <Data>SATab {FC5B96FA-ABDD-4C98-91FA-9BF08ECCA361}</Data>
  <Data>0x80070005 Access is denied.</Data>
Smith and AndersenAsked:
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Please just use %appdata%\Microsoft\Word\STARTUP as target directory. Please note that you need to add the filename to the path as in

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