This is a simple error we have seen on Windows Server 2016, 2019 and 2022. Fortunately, it is easy to explain and easier to fix.
The NTFS access control list (ACL) on the SYSVOL part of the Group Policy Object is set to inherit permissions from the parent folder which does not include permissions you!
You could take a look at c:\windows\sysvol (make sure HIDDEN FILES are turned on so you can see it) and then adjust the NTFS permissions yourself. However, it is far faster and easier to just click the OK button on the Group Policy Management dialog box.
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