For PVS images that use KMS, when you switch modes from Private to Standard and select Key Management Service on the vDisk, the PVS server performs a volume operation on the server that requires elevated privileges, specifically the ability to perform volume maintenance tasks.
If you are running Soap/Stream as Network Service or a custom account, it not have the permissions required.
You can test the GPO \Computer Configuration\Windows Settings\Security Settings\Local Policies\User Rights Assignment\ “Perform Volume Maintenance Tasks” but I have not.
Hat tip: http://pvsguy.com/2014/02/12/why-is-it-important-to-be-a-local-admin-in-pvs/
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