KB3012702 Problems

So, I had a laptop running 8.1 with Update 1 throw an interesting error this morning. The error is.

C:\windows\system32\config\systemprofile\Destkop is unavailable. If the location is on this PC, make sure the device or drive is connected or the disc is interested and then try again. If the location is on a network, make sure you're connected to the network or Internet, and then try again. If the location still can't be found, it might have been moved or deleted.

Click to expand...

The error message comes up after the machine boots, and after you enter your username and password and it loads your profile. The computer is nearly non-functional at this point.

Through numerous system restores, I was able to narrow it down to happening after the installation of KB3012702. I've duplicated the problem a few times now on this 1 computer.

I'm running an sfc /scannow
I ran MalwareBytes Anti-rootkit and found nothing
I've run regular MalwareBytes and just got the normal PUP's popping up.
I've run the Windows troubleshooter and had it correct problems with Windows update.

Any other ideas?

I still haven't fixed the problem, but i found this which is very similar

KB3021674 fails to install - Microsoft Community

Try refreshing if you've tried everything else.